Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 339
Offshore Wind Worldwide 2024
ment of its long-term strategy, the National
Audit Office said.
The Chief Executive of Scottish Power has
highlighted that it would only take two years
to physically build an offshore wind farm
but the planning process is fundamentally
flawed, prolonging the process to nearly 10
years. 29
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enhanced subsidies as a sharp rise in costs
puts British projects at risk.
Since 2022, supply chain inflation has led to
a significant increase in wind turbine prices,
while rising interest rates have pushed up
financing costs.
In order to ensure that wind power is able
to rapidly replace gas in the system, the UK
Government recognises the need to hasten
the permitting process.30
Several companies that won contracts in a
large UK government auction in 2022 to build new renewable power generating capacity
from 2024 have warned that projects will be
difficult to deliver at the prices agreed.
In March 2023, the UK Government published the Offshore Wind Net Zero Investment
Roadmap, which includes a plan to streamline the planning process and accelerate deployment of offshore wind with the creation
of a Fast Track consenting process for Nationally Significant Infrastructure Projects31.
Any delays or cancellations to projects that
were procured through the auction would
represent a big setback to the UK government’s efforts to meet climate targets and
improve security of supply by increasing
domestic energy sources following Russia’s
invasion of Ukraine.32
(b) Increased costs of production
Whilst offshore wind is one of the cheapest
forms of new electricity capacity for the
UK, the cost of developing wind farms had
risen between 20 – 30 per cent as the price
of commodities such as steel and copper
has increased. This will affect new-build gas
stations, carbon capture and nuclear too.
Wind farm developers in the UK such as
Sweden’s Vattenfall and Denmark’s Orsted
are demanding tax breaks from the UK Government to offset rising costs or requesting
29 UK risks wasting huge wind power opportunity, energy boss warns | Financial Times (ft.com).
30 https://www.gov.uk/government/publications/british-energy-security-strategy/british-energy-security-strategy.
31 https://www.gov.uk/government/publications/offshore-wind-net-zero-investment-roadmap/offshore-wind-net-zero-investment-roadmap.
32 Wind farm developers demand UK tax breaks to offset rising costs | Financial Times (ft.com).
