Scots welcome auction boost
Edinburgh calls offshore wind potential ‘enormous’
The government of Scotland has welcomed the results of the second UK Contract for Difference auction, which saw two projects in the country secure support.
EDPR and Engie’s 950MW Moray 1 offshore wind farm off northern Scotland won a contract with a strike price of £57.50 per megawatt hour, while the 85MW Grangemouth biomass plant secured a CfD priced at £74.75/MWh.
Scottish Government Minister for Business, Innovation and Energy Paul Wheelhouse said: “The potential benefits of offshore wind energy are enormous, which is why we are committed to its development and why it features so strongly in our draft Energy Strategy for Scotland.
“This auction further demonstrates that renewable energy is now the best route to delivering sustainable, affordable electricity for consumers.”
Industry body Scottish Renewables described the results as a “welcome boost” for the clean energy sector, but called on the UK government to include onshore wind and solar power in any future CfD rounds.
Scottish Renewables deputy chief executive Jenny Hogan said: “The results of this latest auction are good news for Scotland, for our environment and for our energy system.”
She said the cost reductions seen in offshore wind in particular have been “dramatic and are testament to the determination of developers to drive down costs”.
However, onshore wind and solar are currently excluded from competing in CfD auctions, she added.
“The government has the tools to drive down costs even further and these technologies can and should be allowed to play their role in delivering the government’s own Industrial Strategy.
“We hope to see all renewable technologies getting the chance to bid in future auction rounds and to demonstrate just how cheap they can be.”
Crown Estate Scotland chief executive Ronnie Quinn said the results mean more certainty for Scottish projects.
“Offshore wind directly benefits communities across Scotland by creating jobs, reducing climate change emissions and contributing to the profits that Crown Estate Scotland passes to the public purse.”