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The UK’s position as the second biggest producer of offshore wind is under threat as the USA continues to increase its portfolio.
To maintain its position as a global leader, Renewable UK is urging the next government to increase the budget for the upcoming Contracts for Difference (CfD) auction round.
China has the largest pipeline (227GW) of offshore wind, with the UK second at 96GW across 122 projects in UK waters.
The USA has moved into third place and now boasts a pipeline of 94GW, with Sweden fourth on 68GW and Brazil fifth with 61GW, according to figures released by Renewable UK.
The global pipeline of projects at all stages of development (operational, under construction, consented, in planning or at an early stage of development) has increased slightly to 1,231GW, up from 1,228GW a year ago, with more than 1,500 projects across 41 countries.
The UK’s pipeline, however, has dropped by 1GW – largely due to Vattenfall halting development of its 1.4GW Norfolk Boreas offshore wind farm after seeing costs in the sector rise by up to 40%.
By comparison, the USA has added 12.4GW to its portfolio in the past 12 months.
The report does however point out that the UK has 15.8GW of offshore wind capacity in the planning system awaiting a decision – the highest amount ever in planning at one time.
It also shows that 10.8GW of new UK offshore wind capacity is eligible for this year’s CfD auction round (AR6) across 12 fixed-foundation projects and four floating projects.
RenewableUK’s chief executive Dan McGrail said: “It’s great to see we’ve reached a landmark 75 gigawatts of offshore wind operational worldwide, with the UK maintaining its place as a global leader in an intensely competitive international market.
“To consolidate the UK’s position even further, we’re asking the next government to maximise the amount of offshore wind capacity we can secure in this year’s auction for new projects.
“The current budget will only enable less than half the capacity which is eligible to go ahead, and the floating wind budget will only secure one project even though four can bid in this year, so we need to see more ambition within the first few days of the new government taking office.”
He added: “It’s also significant that the UK has a record high of more than 15GW of new offshore wind capacity in planning. We’ll be urging the next government to reform the planning system to enable projects to go ahead in a more timely manner, to increase the UK’s energy security and drive down bills for consumers.”
The report forecasts that nearly 44GW of capacity could be operational by the end of 2030 in UK waters – compared to the 14.7GW of operational capacity today.
The report adds: “The average time for a project to go fully operational after being awarded a CfD is now five years, so the capacity awarded in the next two allocation rounds has the potential to contribute to the UK’s current target of 50GW by 2030.”
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