The UK government has successfully awarded nine offshore wind farm contracts, signalling a resurgence in green energy projects after last year's auction failed to attract bidders. These contracts, part of a broader green energy initiative including tidal and solar power, are expected to generate 9.6 gigawatts (GW) of renewable energy, enough to power 11 million homes. Among the awarded projects are Europe’s largest wind farms, Hornsea 3 and 4, developed by the Danish company Ørsted.
This boost comes after the industry criticized the previous auction, where no bids were made due to unattractive guaranteed electricity prices that didn’t account for rising construction costs. Keith Anderson, CEO of Scottish Power, hailed the awards as putting offshore wind "back on track" and revitalizing investment in the sector.
The Labour government has set ambitious targets of generating 60GW from offshore wind by 2030. However, with the new projects only contributing 4.9GW, experts like Pranav Menon from Aurora Energy Research stress that more capacity is needed. Greenpeace echoed these concerns, emphasizing that while 5GW is beneficial, it is only half of the annual requirement to meet the 2030 goal.
Energy Secretary Ed Miliband acknowledged the challenges, blaming previous policies for the setback, but celebrated the auction as a crucial step toward achieving energy independence and reducing consumer bills. Despite the long-term benefits, households will still face a 10% increase in energy bills later this year, as Ofgem raises the price cap on gas and electricity.
