SSE on CfD Budget: Strike Prices Ambitious, Capacity Cap Disappointing

SSE has welcomed the UK Government’s Contracts for Difference (CfD) budget announcement, however, the company added that setting out strike prices approaching subsidy-free levels was ambitious and that the capacity cap was disappointing. 

“SSE welcomes the CfD budget announcement, which is an important milestone in the Government’s ongoing commitment to a sustained, long-term policy framework to support offshore wind,” the company stated.

According to the offshore wind developer, which currently has a development pipeline totalling 3.3GW in the UK, even though competitive auctions have been effective in driving down offshore wind prices, the strike prices set out by the UK government – which are approaching subsidy-free levels – are ambitious.

“To deliver projects at this level whilst also meeting higher local content targets will require close collaboration between offshore developers, supply chain partners and financiers,” SSE explained.

With more than just 6GW of renewable energy projects ready to move forward, SSE said the cap on capacity was disappointing.

“We’d urge BEIS to publish the Allocation Framework as soon as possible to give developers sight of how the overall budget will be awarded to help inform the bid process,” the developer said.

To remind, SSE recently announced that it is bringing together the development, operation and ownership of its renewable energy assets in the UK and Ireland under a single entity to be known as SSE Renewables.