In order to switch to clean energy and reduce dependence on fossil fuels, Great Britain is organizing auctions for the development of new wind farm projects. The results of the last auction for new wind farms show that price difference contracts were obtained for a total of 6.3 GW of new wind energy. Of this capacity, 5.3 GW are offshore wind farms, including 400 MW of floating wind farms. The rest, 990 MW, is the capacity of wind farms on land.
Speaking about the development of this energy at sea, the latest auctions achieved a good result, taking into account that there was no capacity for sea at the previous ones.
To clarify, the Contract for Difference (CfD) is a mechanism that provides income stability for renewable energy producers. So, companies that build wind farms submit bids for the price per megawatt-hour (MWh) of energy they plan to produce, and that becomes the guaranteed price. If the market price falls below it, the state will compensate the difference. However, if the price rises, the producer returns the difference to the state.
As stated a little while ago, in the previous auction, no offer for offshore wind farms was received, because the upper limit was low. This means that the maximum price per megawatt-hour of energy that the state was willing to pay to companies was low. That’s why in these latest auctions, Great Britain increased the upper price limit by 66 percent, which is a more realistic price based on which producers could make a profit. It is about an increase to 73 pounds per MWh (about 85 euros).
Looking at the total capacity of 6.3 GW of new wind energy, for which contracts have been obtained, the number of projects is as follows. Nine offshore wind farm projects, one floating wind farm project and 22 onshore wind farm projects.
However, as he states WindEuropethe UK will need to continue to make efforts and secure larger volumes in subsequent auctions to meet its decarbonisation targets. The government of this country has committed to double the capacity of onshore wind farms and quadruple the capacity of offshore wind farms by 2030.
Energy portal
Source: energetskiportal.rs
