Offshore Wind Developers Stay Away from Britain’s Latest Renewable Energy Auction

Offshore wind developers have refrained from participating in the latest renewable energy auction in the UK, arguing that the government’s offered price does not reflect the rising costs of the industry. This setback is a blow to the country’s 2050 net zero emissions target, which calls for 50 gigawatts of offshore wind capacity by 2030, compared to the current capacity of around 14 gigawatts. In a previous auction in 2022, offshore wind projects received significant funding, but developers did not even bid in the latest auction due to the global increase in inflation and its impact on supply chains. These cost increases have prompted developers worldwide to abandon projects or seek renegotiations. The lack of new offshore wind capacity could cost consumers £1 billion per year. The UK government, however, remains committed to its plans to decarbonize the electricity supply and build offshore wind capacity.