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Extending the life of commercial offshore wind farms beyond their expected design life will be key to the UK hitting its 2030 and 2050 targets.
The Crown Estate’s annual offshore wind report states that “keeping the turbines spinning […] must be factored in to considering how 50GW by 2030, and c.95GW by 2050, can be achieved”.
It adds that this will become more pressing in the coming years, with the first commercial offshore wind farms, which were commissioned in 2003, reaching their original expected 20 year design life last year.
It adds: “Following closely behind, in 2027 the first Renewables Obligation Certificates (ROCs) – a form of government subsidy for offshore wind farm operators – are due to expire, and in 2030 the first OFTO tender revenue stream will come to an end.
“These milestone moments illustrate a challenge which must be factored in to considering how 50GW by 2030, and c.95GW by 2050, can be achieved.”
Despite the challenges, the Crown Estate’s report is optimistic about the UK’s offshore wind sector, dubbing it a “success story”.
Gus Jaspert, managing director at The Crown Estate, said: “2023 was a landmark year for the UK offshore wind sector as it generated record levels of green electricity, enough to power half of all UK homes, and continued to grow the pipeline of offshore wind farms despite challenging economic conditions.
“But the year also marked a step change across the industry in the approach needed to accelerate growth within the sector. At The Crown Estate, we’ve been working with others to put in place a host of new measures to deepen collaboration, enhance evidence and data, forward plan, resolve system issues, unlock onshore opportunities and increase pace.
“This shift in mentality and approach has laid strong foundations as we look to accelerate the growth of the sector and meet the hat-trick of priorities – nature recovery, jobs and regeneration, and achieving net zero.”
The report reveals that the UK has the second largest offshore wind market in the world and represents more than 40% of European offshore wind capacity.
The pipeline grew by a further 10GW in 2023 to 93GW, and the sector produced 49TWh of electricity last year.
The Crown Estate report also supports the government’s decision to stick to its 50GW target by 2030, adding that keeping the target “continues to underpin confidence in the market”. That is despite industry figures, including bosses at Orsted, previously warning that the short term targets undermines long-term growth.
It adds that the government’s decision to increase the price cap and budget for the sixth Contracts for Difference allocation round (AR6) was the right decision, after the previous round failed to attract any bids from offshore wind developers.
However, the report adds that to meet the target of 125GW by 2050, there will need to be “a more coordinated approach to seabed management and the delivery of transmission infrastructure, not just to support growth but also to consider the natural environment, other seabed users and to unlock the jobs and prosperity this growth can bring”.
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