The UK government has increased the amount of financial support that will be offered to offshore wind from 2018/19. The draft Contract for Difference (CfD) strike prices published by the UK government this summer offered offshore wind projects £155 ($253) per MWh from 2014/15, dropping to £135/MWh in 2018/19. The government has however now confirmed its intention to offer offshore wind projects £140/MWh in 2018/19, bending to industry concerns that the assumed cost-reductions for the medium term were too severe.
The new strike prices “reinforce the UK’s position as … the number one place for business to invest in offshore wind generation", says Energy and Climate Change Secretary Ed Davey. "Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan.” The government today called 10GW of installed offshore wind capacity in 2020 an "achievable" goal, but tempered its remarks by pointing out that that figure is not an official target, and actual deployment will depend on cost.