A review of offshore wind seabed allocation in the UK: 2000 - 2024
Godfrey-Brown, T; Lazakis, I; Pillai, AC; et al.Morstyn, T; Dou, S; Chaton, C
Date: 2024
Conference paper
Publisher
International Association for Energy Economics (IAEE)
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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, ...
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.
Engineering
Faculty of Environment, Science and Economy
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