A review of offshore wind seabed allocation in the UK : 2000 - 2024

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Godfrey-Brown, Thomas and Lazakis, Iraklis and Pillai, Ajit C. and Morstyn, Thomas and Dou, Suguang and Chaton, Corinne (2024) A review of offshore wind seabed allocation in the UK : 2000 - 2024. In: IAEE 45th International conference, 2024-06-25 - 2024-06-28.

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Abstract

In the UK, seabed leases and subsidies for renewable energy are allocated via tendering processes concluding with competitive auctions. These are respectively termed Leasing Rounds and Contracts for Difference (CfD) Allocation Rounds. The reduced uncertainty in offtake price offered by a CfD improves the creditworthiness of a project, allowing developers to pursue and access financing. The necessity in this uncertainty mitigation has been compounded by an upwards trend in leasing costs, increasing investment requirements. Data relating to seabed leasing in the UK is scarce, unstructured, and scattered across diffuse sources. This paper presents analysis of records relating to seabed leases between 2000-2024, summarising the status of the UK’s offshore wind pipeline. Insights are shared on project non-delivery, with inhospitable site conditions (5.8 GW) revealed as a key driver. The paper also explores the relationship between Seabed Leasing and CfD acquisition, sharing metrics illustrating the significance of the CfD mechanism to financing, and consequently, project delivery.

ORCID iDs

Godfrey-Brown, Thomas ORCID logoORCID: https://orcid.org/0009-0002-1765-5882, Lazakis, Iraklis ORCID logoORCID: https://orcid.org/0000-0002-6130-9410, Pillai, Ajit C., Morstyn, Thomas, Dou, Suguang and Chaton, Corinne;
CORE (COnnecting REpositories)