ORE Catapult statement: CfD Allocation Round 6
Posted on 24 November 2023
Statement and analysis from the Offshore Renewable Energy (ORE) Catapult in response to the UK Government's announcement on Contracts for Difference Allocation Round 6 (AR6).
Andrew Jamieson, Chief Executive of ORE Catapult, said:
“Today’s announcement represents a positive development for driving the future growth of offshore wind and better reflects the economic reality that the wider energy sector is operating in. Even with these new prices, offshore wind is set to remain one of the cheapest forms of electricity available to us, as well as being the UK’s principal source of low carbon generation.
“It’s also very encouraging to see news of a separate funding pot dedicated to offshore wind and, while we await the full details, this should help to provide clarity as we continue our efforts to support and validate the innovative technical solutions that can help propel the UK towards meeting our ambitious targets for offshore wind capacity. The fact that this comes alongside new incentives for fostering low carbon supply chains is also an important aspect of ensuring the future sustainability of the sector.”
Following today’s news, our Analysis and Insights team has taken a look at some of the potential outcomes in relation to the forthcoming auction round for fixed bottom offshore wind. This initial analysis illustrates the budget, or 'pot', that will be required under different assumed scenarios for the announced Administrative Strike Price for the UK to achieve Government targets of 50GW of offshore wind by 2030.
This can be read in full at: https://ore.catapult.org.uk/blog/initial-analysis-of-potential-ar6-outcomes-for-fixed-bottom-offshore-wind-following-updated-strike-price/
The UK Government announcement on AR6 can be read here: https://www.gov.uk/government/news/boost-for-offshore-wind-as-government-raises-maximum-prices-in-renewable-energy-auction
For more information contact: John Lang, Head of Communications, john.lang@ore.catapult.org.uk / 07563 393881
About the Offshore Renewable Energy (ORE) Catapult
ORE Catapult is the UK’s leading innovation centre for offshore renewable energy, established in 2013 by the UK Government as part of a network of Catapults set up by Innovate UK in high growth industries.
In 2023, we are celebrating 10 years of combining world-leading test and demonstration facilities with engineering and research expertise to accelerate technology development, reduce costs, and enhance economic growth across the UK. Find out more at https://ore.catapult.org.uk/10-year/
ORE Catapult operates in Glasgow, Blyth, Levenmouth, Aberdeen, the Humber, the East of England, the South West and Wales, and operates a collaborative research partnership in China.
