Lack of offshore wind in new CfD shows government’s ‘fundamental misunderstanding’ of renewables

In an article for New Civil Engineer partner Richard Marsh calls for the government to change its approach for the next Contracts for Difference (CfD) round in 2024.

In the latest round of CfD, no offshore wind development was agreed upon, leading energy analysts to accuse the government of having a ‘fundamental misunderstanding’ of renewables funding.

Richard Marsh comments:

‘It’s not hugely surprising that no offshore wind CfD contracts arose from the latest auction. Offshore wind developers are not charities; they need to be confident that = their developments are going to be profitable, but when taking into account current financial issues such as inflation and supply chain costs, the maths at £44/MWh simply cannot have added up.’

Read the full article on the New Civil Engineer website.