How will high prices in the recent UK auction for seabed leases impact consumer bills and future wind energy investment?
In recent years, the UK has become a world-leader in offshore wind development, underpinned by significant private sector investment. However, with the price of seabed leases surging early 2021, concerns have been expressed across the industry that further price reductions in the CfD auction and continued offshore wind investments in the UK may be in jeopardy.
The causes and potential consequences of this recent evolution provide important lessons for the industry in the UK and internationally.
This article explores a range of possible outcomes in terms of impact on consumer prices and investment, and considerations for offshore wind developers when defining their bids in the future CfD and seabed auctions.