AR6 move puts ‘UK back on top as global leader’

The offshore wind industry has hailed the government’s decision to increase bidding caps in the upcoming Allocation Round 6.

RenewableUK’s chief executive Dan McGrail said the trade body welcomes the “strong commitment to the sector shown by government today”.

He said it “demonstrates that the UK is intent on remaining a global leader in offshore wind”.  

“There is the potential for the government to attract a record level of private investment in offshore wind projects next year, with at least 10 projects likely to be eligible, able to power 8.5 million homes each year and reduce the UK’s need for gas by 39%,” said McGrail.

“The framework they’ve set out today is a significant step forward in securing this. Although renewables haven’t been immune from the recent rises in financing and supply chain costs which all major infrastructure projects have faced, they remain the lowest cost means of generating new electricity.

“Even at these new prices, there is still no cheaper way to meet the UK’s rising electricity demand and increase our energy security.”

RWE UK country chair Tom Glover also welcomed the move, which he said is a recognition of broader international global supply chain and inflationary cost pressures within the clean energy sector.

“We also welcome the decision to revert to a separate allocation pot for offshore wind for Allocation Round 6, which should help to secure future capacity towards the UK’s 50GW by 2030 target. 

“Today’s announcement represents a positive step towards maximising the UK’s clean energy potential, for ensuring sustained lowest prices for consumers and creating good quality jobs.”

ScottishPower chief executive Keith Anderson (pictured) echoed Glover’s backing.

“Bringing more green energy onto the system is the single most important thing we can do to cut customers’ bills and strengthen our energy security. This is a welcome signal that the government is listening and is committed to getting the UK’s pipeline of offshore wind projects moving again.”

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