Ben Guest, Managing Director, Gresham House New Energy, comments on the result of the UK Government’s bi-annual contracts for difference (CfD) auction, a forum for offshore wind subsidy-granting.
The auction resulted in a huge 5.5GW of offshore wind projects being granted contracts for commissioning between 2023 and 2025. This represents a dramatic increase on previous years – 2.1GW of projects were awarded contracts in 2015 and 3.3GW in 2017.
“The result of the latest CfD auction is a strong endorsement of the continued success of the British offshore wind industry.
The sharp increase in commissioning contracts is largely a result of offshore wind project costs dramatically falling, which in turn reduces the power price they require to earn their target return.”
Gresham House plc (LON:GHE) is a London Stock Exchange quoted specialist alternative asset manager offering funds, direct investment and tailored investment solutions, including co-investment, in public equity, private assets, forestry, new energy and housing.