Commons Sense

House of Commons · Westminster Hall

Floating Offshore Wind and Contracts for Difference

23 May 2024 · 3 other contributors · 7,377 words

Opened by Selaine Saxby Con North Devon

Responding minister: Justin Tomlinson

ClimateEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Selaine Saxby raised concerns about floating offshore wind and contracts for difference in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about low investor confidence in floating offshore wind projects following AR5's failure to secure contracts.
  • Saxby highlights the need for port investment and infrastructure development to scale up floating offshore wind projects.
  • The minister announced a 105 million budget for allocation round 6 pot 2 dedicated to emerging technologies like floating offshore wind.

Key requests to Government

Saxby asks for an increased budget for AR6 to accommodate multiple viable projects that missed out on AR5 and ensure the development of stepping-stone projects. She also requests dedicated Celtic sea funding, an integrated port and infrastructure strategy, streamlined planning processes, and support for skills development in economically deprived areas.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Selaine Saxby Con North Devon

Selaine Saxby is concerned about the low investor confidence following AR5's failure to secure any contracts. She highlights that the UK has a large pipeline of floating offshore wind projects, including Kincardine and Hywind in Scotland, which are set to contribute significantly to energy generation by 2030 and 2050. However, she notes that port investment from FLOWMIS is crucial for scaling up these projects, and the lack of funding for critical ports like Falmouth is a major concern. Additionally, there are environmental concerns with cable routes, as seen in North Devon's White Cross wind farm project.

Other contributors (3)
  • Alan Whitehead Lab Southampton Test

    Labour wants to see at least 5 GW of floating offshore wind deployed by 2030 and proposes establishing a national wealth fund to support this. The infrastructure for floating offshore wind is currently lacking, with only partial funding allocated for port development through the FLOWMIS programme.

  • Peter Grant SNP Milton Keynes South

    Mr. Grant expressed concern about the current pace of offshore wind development, noting that the UK needs to secure another 21 GW over the next two allocation rounds to meet its 50 GW target by 2030. He highlighted issues with previous allocations and emphasised the need for a substantial budget increase for round 6. Mr. Grant also stressed Scotland's potential as a world leader in floating offshore wind, citing its existing expertise and resources.

  • Stephen Crabb Con Preseli Pembrokeshire

    Stephen Crabb emphasised the importance of the port of Milford Haven's development ambitions at Criterion quay, highlighting its critical role in supporting future commercial-scale phases of floating offshore wind projects in the Celtic Sea.

Government Response

Justin Tomlinson

Acknowledged the achievements in fixed-bottom offshore wind deployment with over 14 GW installed, and commitment to up to 50 GW by 2030 including 5 GW from floating offshore wind. Raised administrative strike price for floating offshore wind by 52% due to cost pressures. Announced £105 million budget for allocation round 6 pot 2 dedicated to emerging technologies such as floating offshore wind. Stressed the need for balance in supporting new technologies and maintaining financial prudence to avoid burdening consumers with higher energy bills.

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