Westminster increases price wind power projects can receive to entice investment

The UK government will be increasing the price for wind power projects in the hopes of increased investment in the renewable energy sector, after the last round of auctions for contracts saw zero bids.

Claire Mack, Chief Executive of Scottish Renewables, says she hopes the move will attract more interest in renewable energy investment: “Scottish Renewables has repeatedly warned of the cost pressures and increased challenges facing our industry so we’re pleased the UK Government has responded by delivering administrative strike prices which should go a long way to restoring investor confidence in the Contracts for Difference Scheme as a viable route to market for offshore wind.

“Make no mistake renewable energy is the cheapest way of generating electricity.”

The SNP’s Richard Thomson says the most recent investment opportunity was an embarrassing moment for the government: “The UK government’s last auction round was a total failure, attracting precisely zero bids on offshore wind so really this news comes as no surprise.”

“Successive UK governments have allowed the National Grid to become outdated and ill-equipped to deal with Scotland’s offshore wind potential.”

With Allocation Round 5 ending in disappointment for Scottish Renewables, they believe that the government’s new measures will be helpful, but that more could still be done.

“Whilst welcome, today’s announcement will not by itself ensure the success of this allocation round of the Contracts for Difference scheme. It is therefore essential that the UK government provides a budget for Allocation Round 6 that aligns with Scotland’s renewable energy ambitions by maximising the number of projects successful in winning contracts to deliver clean power to consumers.”

The next Contracts for Difference auction round is due to take place next year, and the renewable energy sector will be hopeful that these new measures can attract greater investment.