Key insights
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Auction framed as key test for 2030 clean power goals: The auction was considered crucial for meeting an election pledge to double onshore wind, triple solar power, and quadruple offshore wind by 2030 to create a virtually zero carbon electricity system by the end of the decade.
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Higher contract prices than wholesale market noted alongside bill impacts: Winning bid prices were above the stated wholesale electricity price of about £81/MWh, and experts said increased wind power could still help keep bills down by reducing reliance on expensive gas plants.
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Cost and financing pressures on offshore wind highlighted: The offshore wind industry was stated to face rising costs from supply-chain inflation and higher interest rates for financing multibillion-pound projects.
Takeaways
The auction awarded subsidy contracts for 8.4GW of new offshore wind capacity at £89.49–£91.20/MWh, with the government and experts linking the outcome to progress toward a 2030 clean electricity system.
Topics
World & Politics Policy & Regulation Climate & Environment Climate Change Energy Energy Transition