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.
Related Insights

Baringa congratulates Amarenco on financing of 105 MW battery storage asset in the French market
Baringa has supported Amarenco throughout the development and financing process as commercial advisor.
Read more
Baringa supports R.Power Renewables on investment of €150 million by 3SIIF
As a sell-side commercial advisor, Baringa provided market advisory across continental European markets.
Read more
Power Purchase Agreements (PPA): how is trading responding to the evolving PPA market?
Baringa's Henning Bottger was a guest speaker at the enmacc Digital Trader Summit 2020, where he presented a talk on Power Purchase Agreements (PPAs)
Read more
The future cost of wholesale energy
As wholesale energy costs soar, what part does renewable electricity generation have to play in achieving the ambitious UK decarbonisation targets
Read more