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New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
UK allocates £205mn budget to power latest renewables auction
22/3/2023
The UK government has announced a budget of £205mn for its latest renewables auction, with the aim of boosting energy security, growing the economy and ‘powering more of Britain from Britain’.
The Contracts for Difference (CfD) scheme is the government’s flagship mechanism for supporting new British low-carbon electricity generation projects. It has so far awarded contracts to projects totalling nearly 27 GW of low-carbon capacity.
The announcement of the budget for the fifth CfD allocation round includes £170mn for established technologies such as offshore wind, and a £10mn ring-fenced budget available for tidal stream technologies.
The scheme has so far awarded contracts to 52 projects in Scotland, representing around 30% of all CfD projects and around 25% of total CfD capacity. Contracts have been awarded to nine projects in Wales, totalling around 260 MW of capacity.
According to the government, the scheme is designed to deliver low-carbon deployment at low cost to consumers – so that when wholesale electricity prices are higher than the price agreed in the CfD, generators pay back the difference. This revenue will be passed on to energy suppliers and, over time, is expected to translate to lower bills for consumers.
First floating wind for Wales
Meanwhile, the Welsh government has granted consent for Wales’ first floating wind farm, to be located 40 km off the coast of Pembrokeshire.
Project Erebus will house seven next-generation 14 MW turbines on floating platforms, providing enough low-carbon energy to power 93,000 homes. Erebus is part of the first phase of a 4 GW renewable energy development in the Celtic Sea, which will provide enough power for 4mn homes.
Blue Gem Wind, the joint venture between TotalEnergies and Simply Blue Group, is currently on target to begin operating the 100 MW Erebus project in 2026.
Port upgrade
In other news, a report by the Floating Wind Offshore Wind Taskforce says up to 11 of the UK’s ports will need to be transformed ‘as soon as possible’ into new industrial hubs to enable the roll-out of floating offshore wind at scale.
The report recommends investing £4bn to ensure the country’s ports are ready for mass floating wind deployment by the end of this decade. Upgrades are needed to enable turbines with hub heights taller than 150 metres and their giant floating bases to be manufactured and assembled in coastal locations.
Initially, a minimum of three to five ports will be needed in Scotland to install turbines onto the floating bases, with a further two ports needed to service the Celtic Sea sector. Additionally, at least four other UK ports will need to be revitalised for manufacturing massive steel and concrete components for floating foundations. More ships and bigger cranes will also be required in the construction process, creating further industrial opportunities, the report says.
