Offshore wind developers that take steps to lower the carbon footprint in their supply chains could receive additional payments through the UK’s flagship Contracts for Different renewables scheme, according to the government.
To be eligible, offshore wind companies will have to take action to increase their sustainability and invest in the offshore wind supply chain.
This could include investing in new factories in economically disadvantaged areas to shorten their supply chains, or choosing companies investing in sustainable manufacturing practices to build their projects.
The payments, called Sustainable Industry Rewards (SIRs), will apply to offshore wind and floating offshore wind companies from Allocation Round 7 as part of the Contracts for Difference scheme, due to open in 2025.
SIR applicants will compete against each other in a competitive auction, in order to ensure the best value for money for billpayers.
Minister for nuclear and renewables Andrew Bowie said: “There is no better way of strengthening the long-term growth of our renewable energy supply chain than through our flagship Contracts for Difference scheme, which has already had enormous success in supporting British low-carbon electricity.
“Sustainable Industry Rewards will enable offshore wind companies to kickstart the investments that will create an even stronger sector, boost our energy security and grow our economy.
“I look forward to their formal introduction, which will enhance our reputation as one of the most attractive places globally to invest in renewables.”
Nick Hibberd, economics and markets policy analyst at RenewableUK, said: “If SIRs are implemented in the right way, we can grow our offshore wind supply chain throughout the UK, supporting new manufacturing, job creation, technical innovation and investment in skills.
“This will enable us to build new projects faster, drive down costs even further, accelerate our transition to clean, low-cost power and strengthen Britian’s energy security significantly.”
Sourced by: reNEWS.biz
