Coutinho vows next CfD auction will attract offshore wind bids

Energy secretary Claire Coutinho has promised that the next Contracts for Difference auction (AR6) will attract bids from offshore wind developers.

The recently appointed secretary of state said that she was committed to delivering “a successful AR6 that includes offshore wind”, during her keynote speech at Energy UK’s annual conference.

Coutinho added that details of the AR6 strike piece will be published next month.

It comes after the latest CfD auction (AR5) failed to attract any bids from offshore wind developers.

Coutinho added: “We’re investing in our world leading offshore wind sector, delivering enough offshore wind to power the equivalent of every home in Britain by 2030.

“I am committed to a successful AR6, a round that includes offshore wind in which sustainably priced projects will be able to compete.

“And we’ll be publishing the administrative strike price for the next round in November.”

The government has been heavily criticised for failing to alter its AR5 strike price despite warnings that it was unfavourable for offshore wind bids.

Despite the criticism government has repeatedly claimed that the latest auction was a success, with energy minister Graham Stuart labelling it as a “triumph,” despite the complete absence of offshore wind bids.

Shadow energy secretary Ed Miliband accused the government of “sticking its fingers in its ears” in response to industry warnings about AR5, during his speech at the same conference.

He added that the auction was a “totally avoidable fiasco” and added that it is “not the approach Labour would take” if it were in power.

Miliband also criticised the government for backtracking on green commitments. In a thinly veiled criticism of prime minister Rishi Sunak’s net zero speech last month, Miliband said that there “doesn’t have to be an either/ or choice” when it comes to balancing net zero and affordability.

He added that “you can have both” adding that Labour’s pledge to deliver 100% clean power by 2030 “is hard but achievable”, likening those who say it is impossible to covid vaccine sceptics.

However, Coutinho rubbished the target in her speech, saying that “unachievable claims – and targets for targets sake – do not provide certainty”.

To read Utility Week’s analysis of the latest CfD auction, click here.