Contract for Difference
Boost for offshore wind
The UK Government has increased the maximum price for offshore wind projects by 52% for floating offshore wind projects.
The Contracts for Difference (CfD) scheme ensures renewable energy projects receive a guaranteed price from the government for the electricity they generate. The maximum strike price has been increased by 66% for offshore wind projects, from £44/MWh to £73/MWh, and by 52% for floating offshore wind projects, from £116/MWh to £176/MWh ahead of Allocation Round 6 (AR6) next year.
Tess Blazey, Director of Policy and External Affairs for Floventis Energy commented on the announcement. She said: “The announcement that UK Government is increasing the strike price caps for the upcoming Contract for Difference (CfD) round is welcome news. It demonstrates that government is listening to our industry and is aware of the need to maintain and build investor confidence but the real test for test and demonstration projects will come when the full budget is announced for AR6 in early 2024 as this will set the tone for future investments like Llŷr 1&2 .