Powering Ahead: Accelerating offshore wind deployment

A woman with shoulder-length brown hair, wearing a navy blouse and a pearl necklace, stands near wooden architecture. — Danielle Lane, RWE’s Director of Offshore Wind Development (UK and Ireland)

Danielle Lane, RWE Director of Offshore Development, UK and Ireland

As identified in the Clean Power Action Plan, offshore wind will play a key role as the ‘backbone’ of the 2030 clean power system.

In the second edition of RWE’s ‘Clean Power’ Reflections Series, RWE’s Director of Offshore Development for UK and Ireland, Danielle Lane, looks into the role that offshore wind can play in delivering CP2030, and the actions required to maximise deployment and keep the Clean Power target on track.

Three white offshore wind turbines with yellow bases and a nearby service platform, emphasising clean energy for 2030.

Two wind turbines are depicted beside a graphic showing RWE's Sofia offshore wind farm, emphasising economic benefits and job creation.

A construction site with two workers discussing a project, a crane on the right, and stacked barrels in the background.

A graphic showing power lines and the number 4, stating the need for 12 GW offshore capacity in upcoming auctions.

Three wind turbines with yellow bases stand amidst stylised waves on a deep blue background, highlighting planning risks for investors.

A diagram illustrating the benefits of extending the CfD contract to 25 years, featuring wind turbines and a timeline.

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In summary

The benefits of offshore wind go far beyond just clean energy. For example, RWE’s Sofia offshore wind farm: in addition to powering an estimated 1.2 million UK homes each year, it will create an estimated 8,800 jobs, and deliver an estimated £760 million boost to the UK economy.
To meet the Clean Power target, at least c.12 GW of offshore wind must be procured in the next two Contract for Difference (CfD) auctions (Allocation Round 7 and 8). We need a relentless focus on bringing forward shovel-ready projects that can deliver before 2030. The following are critical if we’re to ensure success:
Increasing the length of the CfD contract: Extending the CfD contract to 25 years would better align with the lifespan of new offshore wind projects, increase revenue certainty and reduce strike prices and consumer costs vs the current 15 year contract.
Auction transparency: Efforts to prevent any unused budget in the CfD auction are welcome. However, if the pre-auction view of the budget is to be removed, it is important that bidders are provided with sufficient certainty of auction procurement. RWE recommends setting a capacity ‘minima’ per pot and publishing an auction schedule through to at least Allocation Round 10 (2028).
Eligibility criteria for CfDs: If all projects are consented as expected by the time of AR7 opening, there will be record levels of eligible capacity able to participate. Allowing projects without planning consent to bid into the CfD auction is therefore unnecessary. It is also risky, as it could have a destabilising impact on the supply chain and lead to increased consumer costs.
Wake effects management: Uncertainty over how ‘wake effects’ (where one wind farm reduces the wind speed of a second wind farm) are managed is having a material impact on investor business cases. To provide investors with certainty, wake effects should not be a consideration in the planning process.
Grid re-ordering process: Whilst we fully support the steps currently being taken by the National Energy System Operator (NESO) to address the large queue of projects awaiting connection to the grid, the process itself is currently creating considerable uncertainty for projects working towards the next CfD auction. It is important that revised grid offers are issued as soon as possible.

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