Comment: Contracts for Difference auction secures no offshore wind

Commenting on the results of the latest Contracts for Difference (CfD) Allocation Round [1], Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit (ECIU) said: “The renewables that were secured at this auction are still lots cheaper - a third for some technologies - than wholesale power prices which are set by gas.

“But the elephant in the room is the renewables that weren't secured. We've potentially missed out on bill savings worth over £1bn from no offshore wind bids, which again would be far cheaper than the alternative gas. [2] That's bad news for households, the industry and the Government - not a good look for outdated Treasury rules to be blocking cheaper bills ahead of the next Election.

“The industry says our offshore wind market, the second largest in the world, is ready to deliver. Will the government rerun this auction with sensible strike prices?”

ENDS

Notes to editors:

1. Contracts for Difference (CfD) Allocation Round 5: results: https://www.gov.uk/government/publications/contracts-for-difference-cfd-allocation-round-5-results
2. ECIU: Billpayers could miss out on £1bn a year in savings due to wind auction error: https://eciu.net/media/press-releases/2023/billpayers-could-miss-out-on-1bn-a-year-in-savings-due-to-wind-auction-error

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net