Media Coverage
Source: City A.M.
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
04.02.24
Earlier this week, the Contracts for Difference (CfD) Auction Round Six (AR6) process, a months-long competitive auction process that incentivizes cost-effective projects, commenced in the UK. Developers of upcoming offshore wind projects have the opportunity to submit an application outlining the cost, size and scope of their projects for potential funding.
However, due to the last two auction rounds going poorly for the UK’s offshore wind sector, project confidence is low, and this year’s wind power auction could “make-or-break” the country’s path to net zero, according to City A.M.
In an interview with City A.M., Energy partner Gavin Watson called AR6 a “watershed moment” for the industry.
“Whilst AR6 has all the makings of an auction round fit for success, this is not the end of the story,” Watson said. “Continued supply chain bottlenecks, expected spikes in steel demand and inflationary pressures are threatening to create significant headwinds for successful bids.”
“Constrained cable supply is perhaps the most pressing supply chain challenge facing the industry in the short-term and with limited manufacturing capacity in a world rushing to electrify, these cables are likely to remain in short supply for many years to come,” he added.
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