Offshore wind power in the United Kingdom

Last updated

The United Kingdom became the world leader of offshore wind power generation in October 2008 when it overtook Denmark. [1]

Contents

Government direction in the development of offshore wind power advanced in 2016 with the development of strategies and systems.

The total offshore wind power capacity installed in the United Kingdom at the start of 2022 was 11.3 GW. By 2023, the United Kingdom had over 11,000 wind turbines with a total installed capacity of 30  gigawatts (GW): 15 GW onshore and 15 GW offshore, [2]

The UK has set a target to have 50GW of offshore wind capacity by 2030. [3]

History

Burbo Bank Offshore Wind Farm. Pretty flamingos - geograph.org.uk - 578705.jpg
Burbo Bank Offshore Wind Farm.

The United Kingdom has been estimated to have over a third of Europe's total offshore wind resource, which is equivalent to three times the electricity needs of the nation at current rates of electricity consumption [4] (In 2010 peak winter demand was 59.3 GW, [5] in summer it drops to about 45 GW).

One estimate calculates that wind turbines in one third of United Kingdom waters shallower than 25 metres (82 ft) would, on average, generate 40 GW; turbines in one third of the waters between 25 metres (82 ft) and 50 metres (164 ft) depth would on average generate a further 80 GW, i.e. 120 GW in total. [6] An estimate of the theoretical maximum potential of the United Kingdom's offshore wind resource in all waters to 700 metres (2,300 ft) depth gives the average power as 2200 GW. [7]

The first developments in United Kingdom offshore wind power came about through the now discontinued Non-Fossil Fuel Obligation (NFFO), leading to two wind farms, Blyth Offshore and Gunfleet sands. [8] The NFFO was introduced as part of the Electricity Act 1989 and obliged United Kingdom electricity supply companies to secure specified amounts of electricity from non-fossil sources, [9] which provided the initial spur for the commercial development of renewable energy in the United Kingdom.

Offshore wind projects completed in 2010–2011 had a levelised cost of electricity of £136/MWh, which fell to £131/MWh for projects completed in 2012–14 and £121/MWh for projects approved in 2012–2014; the industry hopes to get the cost down to £100/MWh for projects approved in 2020. [10]

The construction price for offshore windfarms has fallen by almost a third since 2012 while technology improved and developers think a new generation of even larger turbines will enable yet more future cost reductions. [11] In 2017 the UK built 53% of the 3.15 GW European offshore wind farm capacity. [12] In 2020, Boris Johnson pledged that, by the end of the decade, offshore wind would generate enough energy to power every UK home. [13]

In 2013, the 175-turbine London Array wind farm, located off the Kent coast, became the largest offshore wind farm in the world; this was surpassed in 2018 by the Walney 3 Extension.

In 2013 the Offshore Energy Strategic Environmental Assessment (SEA) was first published and has been updated regularly. It is the guiding document from the UK government on offshore energy. [14]

In 2016 the government created the Low Carbon Contracts Company as the party low carbon developers will contract with in the Contracts for Difference (CfD) scheme, the developers having won bids in government auctions. The developers would be paid a flat, index linked rate, for electricity for 15 years. Each contract would have a strike price being the price for electricity reflecting the cost of investing in that specific technology with the developer paid the difference between the strike price and the average market price for electricity. [15]

At the start of 2022 there was a total of 11.26 GW of installed offshore wind capacity. [16] During 2022 an additional 3.2 GW of capacity was added with the commissioning of the Moray East, Triton Knoll and Hornsea Project Two wind farms. [17] [18] [19] A further 13.6 GW of capacity is either under construction (Neart Na Gaoithe, Sofia, Seagreen & Doggerbank A) or has been awarded a Contract for Difference in Round 3 [20] or Round 4. [21]

Offshore wind bidding rounds

In 1998, the British Wind Energy Association (now RenewableUK) began discussions with the government to draw up formal procedures for negotiating with the Crown Estate, the owner of almost all the United Kingdom coastline out to a distance of 12 nautical miles (22.2 km), to build offshore wind farms. The result was a set of guidelines published in 1999, to build "development" farms designed to give developers a chance to gain technical and environmental experience. The projects were limited to 10 km2 (3.9 square miles) in size and with a maximum of 30 turbines. Locations were chosen by potential developers and a large number of applications were submitted.

Seventeen of the applications were granted permission to proceed in April 2001, in what has become known as Round 1 of United Kingdom offshore wind development. [22]

In 2020, the Boris Johnson-led government decided to permit onshore wind power, and since December 2021 onshore wind developers have been able to compete in subsidy auctions with solar power and offshore wind. [23]

Round 1

The first of the Round 1 projects was North Hoyle Wind Farm, completed in December 2003. The final project, Teesside, was completed in August 2013. Twelve Round 1 farms in total are in operation providing a maximum power generating capacity of 1.2 GW. Five sites were withdrawn, including the Shell Flat site off the coast of Lancashire. [24]

Four offshore wind farms are in the Thames Estuary area: Kentish Flats, Gunfleet Sands, Thanet and London Array. The latter was the largest in the world from April 2013 to September 2018. Thames Estuary and Wind Farms from Space NASA with annotations.jpg
Four offshore wind farms are in the Thames Estuary area: Kentish Flats, Gunfleet Sands, Thanet and London Array. The latter was the largest in the world from April 2013 to September 2018.

Round 2

Delivery of UK's longest onshore turbine blades. 58.7m blades for 145m GE 2.75-120 wind turbines at Muirhall Wind Farm. Turbine Blades Head to Muirhall Wind Farm.jpg
Delivery of UK's longest onshore turbine blades. 58.7m blades for 145m GE 2.75–120 wind turbines at Muirhall Wind Farm.

Lessons learnt from Round 1, particularly the difficulty in getting planning consent for offshore wind farms, together with the increasing pressure to reduce CO2 emissions, prompted the then Department of Trade and Industry (DTI) to develop a strategic framework for the offshore wind industry. This identified three restricted areas for larger scale development, Liverpool Bay, the Thames Estuary and the area beyond the Wash, called the Greater Wash, in the North Sea. Development was prevented in an exclusion zone between 8 and 13 km offshore to reduce visual impact and avoid shallow feeding grounds for sea birds. The new areas were tendered to prospective developers in a competitive bid process known as Round 2. The results were announced in December 2003 with 15 projects awarded with a combined power generating capacity of 7.2 GW. By far the largest of these is the 900 MW Triton Knoll. [26] As before a full Environmental Impact Assessment (EIA) would be needed along with an application for planning consent.

The first of the Round 2 projects was Gunfleet Sands II, completed in April 2010 and six others are now operational including the London Array, formerly the largest wind farm in the world. Four other Round 2 sites are currently under construction. [24]

Scroby Sands wind farm from Great Yarmouth Scrobysands04.11.2005.a.jpg
Scroby Sands wind farm from Great Yarmouth

Round 1 and 2 Extensions

In May 2010, the Crown Estate gave approval for seven Round 1 and 2 sites to be extended creating an additional 2 GW of offshore wind capacity. [27] Each wind farm extension required a complete new planning application including an Environmental Impact Assessment and full consultation. The sites are: [28]

Round 3

Following on from the Offshore wind SEA announced by the Government in December 2007, the Crown Estate launched a third round of site allocations in June 2008. It followed the success of Rounds 1 and 2, from which important lessons were learnt; Round 3 was on a much bigger scale than the combined total of its predecessors (Rounds 1 and 2 allocated 8 GW of sites, while Round 3 alone could identify up to 25 GW).

The Crown Estate proposed nine offshore zones, within which a number of individual wind farms would be situated. It ran a competitive tender process to award leases to consortia of potential developers. The bidding closed in March 2009 with over 40 applications from companies and consortia and multiple tenders for each zone. The successful bidders were announced on 8 January 2010.

Following the allocation of zones, individual planning applications still had to be sought by developers. The first zone came on stream in 2018; several more have still to be completed, and some have been abandoned (see below).

Round 3 consortia

During the bidding process there was considerable speculation over which companies had bid for the zones. The Crown Estate did not make the list public and most of the consortia also remained silent. The successful bidders for each zone were eventually announced as follows: [29]

Round 3 wind farms
Zone [30] Zone nameWind farm site namesPotential
power (GW)		DeveloperNotes
1 Moray Firth Beatrice 1.3 (0.58)Moray Offshore Renewables LtdFormed from EDP Renováveis and SeaEnergy Renewables Ltd (SERL)
Project scaled down to 588 MW
Commenced commercial operation in 2018
2 Firth of Forth Alpha/Bravo3.5Seagreen Wind Energy LtdPartnership between SSE Renewables and Fluor Ltd. SSE withdrawing support beyond the consent process.
3 Dogger Bank Crekye A/B & Teesside A/B/C/D 7.2 Forewind LtdA consortium made up of SSE Renewables, RWE npower, Statkraft and Statoil.
SSE withdrawing support beyond the consent process.
Project scaled down to 4.8 GW in 2015
Expected to commence commercial operation in 2024
4 Hornsea Hornsea One, Two, Three and Four (formerly Heron/Njord/Breesea/Optimus & SPC5/6/7/8)6 Ørsted (formerly SMart Wind Ltd)SMart Wind was a joint venture between Mainstream Renewable Power and Siemens Project Ventures. 100% acquired in 2015 by DONG Energy, which rebranded as Ørsted in 2017.

Hornsea One (1.2 GW) became fully operational in December 2019. [31] Hornsea Two (1.32 GW) became fully operational on 31 August 2022. Development consent for Hornsea Three (2.4 GW) was granted on 31 December 2020 and Ørsted signed the CfD for the project on 3 August 2022. [32] Hornsea Four remains in development.

5East Anglia East Anglia ONE/TWO/THREE/ONE NORTH 7.2East Anglia Offshore Wind LimitedJoint venture between ScottishPower Renewables and Vattenfall AB
ONE commenced commercial operations in 2020.
TWO is expected to be fully operational by 2022.
THREE is expected to start construction in 2022
6Southern Array Rampion 0.6 (0.4) E.ON Climate & Renewables / UK Southern Array LtdLocated south of Shoreham-by-Sea and Worthing in the English Channel
Commenced commercial operation in 2018
7West of Isle of Wight Navitus Bay 0.9 Eneco Round 3 Development LtdWest of the Isle of Wight; partnership between Eneco and EDF. Planning permission refused by government in September 2015 due to visual impact. [33]
8Atlantic Array Atlantic Array Channel Energy Ltd (Innogy)Withdrawn in November 2013 as "project uneconomic at current time" [34]
9 Irish Sea Celtic Array Celtic Array LimitedWithdrawn in July 2014 due to "challenging ground conditions that make the project economically unviable". [35]
Total26.7

In 2009, during the Round 3 initial proposal stage 26.7 GW of potential capacity was planned. However, due to government planning permission refusal, challenging ground conditions and project financing issues, a number of proposed sites were withdrawn. A number of other sites were also reduced in scope.

Contracts for Difference Allocation Round 1

Announced in 2014 with winners notified in February 2015, Contracts for Difference (CfD) Allocation Round 1 raised 1.1 GW of offshore wind development in two locations, East Anglia 1 (EA 1) and Neart na Gaoithe. The strike prices were £114.39 and £119.89. [36]

Contracts for Difference Allocation Round 2

Announced in 2017, the winners of Allocation Round 2 had three offshore wind developments giving 3.2 GW of energy, Triton Knoll, Hornsea 2 and Moray Offshore. the strike price was £74.75 and £57.50. [37]

Contracts for Difference Allocation Round 3

Called by the Government Contracts for Difference (CfD) Allocation Round 3 was announced in 2019 and represented the first large scale new leasing round in a decade. This offers the opportunity for up to 7 GW of new offshore capacity to be developed in the waters around England and Wales. [38] This is split into four bidding areas, Dogger Bank, Eastern Regions, South East and Northern Wales and Irish Sea.

Five commercial winners that would give a total capacity of 5.46 GW by 2024/25 at a strike price of £39 to £41 MWh were announced later in the year. Three at Doggerbank, Sofia Offshore Wind Farm Phase 1 and Seagreen Phase 1. [39]

Contracts for Difference Allocation Round 4

Announced in 2021, the CfD Allocation Round 4 results, which included winners for all types of renewable energy, were announced in July 2022 with 6.99 GW by 2026/27 and included Inch Cape Phase 1, EA3 Phase 1, Norfolk Boreas Phase 1, Hornsea Project Three and Moray West Offshore all at a strike price of £37.35. [40]

Contracts for Difference Allocation Round 5

Announced in 2022, the CfD Allocation Round 5 results announced in 2023 did not have any offshore wind, as the potential bidders did not believe the government had taken inflation and supply chain problems sufficiently into account. [41]

Contracts for Difference Allocation Round 6

A consultation was announced in late 2023 with comments requested by January 2024, with plans for a CfD Allocation Round 6 being announced in March 2024. [42]

Future plans

The UK has accelerated its decommissioning of coal power stations aiming for a 2024 phase-out date, [43] and recent British nuclear power stations have encountered significant technical issues and project overruns that have resulted in significant increases in project costs. [44] These issues have resulted in new UK nuclear projects failing to secure project financing. Similarly, SMR technology is not currently economically competitive with offshore wind in the UK. Following the Fukushima nuclear disaster public support for new nuclear has fallen. [45] In response, the UK government increased its previous commitment for 40 GW of Offshore wind capacity by 2030. [46] As of 2020, this represents a 355% increase over current capacity in 10 years. It is expected the Crown Estate will announce multiple new leasing Rounds and increases to existing bidding areas throughout the 2020–2030 period to achieve the government's aim of 40 GW.

Scottish offshore

In addition to the 25 GW scoped under the Round 3 SEA, the Scottish Government and the Crown Estate also called for bids on potential sites within Scottish territorial waters. These were originally considered as too deep to provide viable sites, but 17 companies submitted tenders and the Crown Estate initially signed exclusivity agreements with 9 companies for 6 GW worth of sites. Following publication of the Scottish Government's sectoral marine plan for offshore wind energy in Scottish territorial waters in March 2010, [47] six sites were given approval subject to securing detailed consent. Subsequently, 4 sites have been granted agreements for lease. [48]

In 2022 Crown Estate announced the outcome of its application process for ScotWind Leasing, the first Scottish offshore wind leasing round in over a decade and the first ever since the management of offshore wind rights were devolved to Scotland. 17 projects were selected with a capacity of 25 GW.

List of newly operational and proposed offshore wind farms

  Operational
  Under construction
  Pre-construction
  Planned

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