Electrical energy produced from renewable resources and nuclear power is slated to form the foundation of the UK’s electrical energy system by 2030, according to a new action plan published by the UK government in December 2024. Offshore wind, currently contributing approximately 17 percent to the nation’s electricity generation, has been identified as having “a critically important role as the backbone of the clean energy framework,” the government stated, announcing initiatives to simplify part of the process for establishing offshore wind farms as early as the upcoming Contract for Difference (CfD) round anticipated for summer.
The action plan, released by the Department for Energy Security and Net Zero (DESNZ), was introduced by the UK Energy Secretary Ed Miliband on 13 December and is described as a “significant milestone to fulfill the Prime Minister’s Plan for Change that seeks to stimulate economic growth and revitalize Britain through mission-focused governance.”
The Clean Energy 2030 Action Plan serves as a guide to a (nearly) fully clean energy system in the UK by 2030, with clean resources accounting for 95 percent of Great Britain’s electricity production and gas utilized for no more than 5 percent of total generation.
“Untreated gas will continue to serve as a backup during the transition to clean energy, ensuring supply security. This implies that we will maintain sufficient capacity until it can be safely substituted with low-carbon technologies”, the action plan states. “Throughout the period leading to 2030, supply security will be maintained with the preservation of an anticipated 35 GW of untreated gas reserve capacity.”
In 2023, gas contributed 35 percent to the UK’s electricity production, while offshore wind was the second-largest contributor at 17 percent, followed by nuclear energy at 14 percent.
The UK government now aims to position renewable energy, particularly offshore wind, alongside nuclear as essential elements of the 2030 energy mix, targeting 43-50 GW of offshore wind operational capacity. Presently, the UK boasts 14.8 GW from established offshore wind farms and an additional 16 GW of capacity either contracted or under construction.
“The government will therefore seek to secure at least 12 GW across the next 2 to 3 allocation rounds – AR7, AR8, and potentially AR9 depending on the speed of project deployment,” states DESNZ in the initial report of the Clean Energy 2030 Action Plan.
To achieve this target, the UK government will also implement specific reforms to the Contracts for Difference (CfD) system, which are expected to be in effect ahead of the next CfD round, Allocation Round 7 (AR7).
One reform will involve relaxing eligibility criteria for fixed-bottom offshore wind farms, allowing projects that have not yet received full planning consent to participate.
“This will facilitate the awarding of CfDs at an earlier stage within the offshore wind development cycle compared to the current framework. Together with broader reforms, this could enhance competition and promote earlier supply chain engagement,” according to the action plan.
Additionally, the government intends to modify the information that the Secretary of State utilizes to inform the final decisions for fixed-bottom offshore wind, to prevent a repetition of the AR5 experience.
The reforms will also involve introducing an auction schedule, including capacity targets for forthcoming allocation rounds, and a review of auction parameters, including the methodology for Reference Prices used to estimate the financial impact of projects entering bidding rounds.
ADVERTISE ON OFFSHOREWIND.BIZ
Engage your target audience in one action! OffshoreWIND.biz is read by thousands of offshore wind professionals every day.
Follow offshoreWIND.biz on:
