Contracts Signed For Eastern Green Link 2 Cable And Converter Stations
The title of this post, is the same as that of this press release from National Grid.
These four bullet points, act as sub-headings.
- Eastern Green Link 2 (EGL2) is a 525kV, 2GW high voltage direct current (HVDC) subsea transmission cable from Peterhead in Scotland to Drax in England delivered as a joint venture by National Grid and SSEN Transmission
- The joint venture has signed a contract with the Prysmian Group to supply around 1,000km of cable for the project and a contract with Hitachi Energy and BAM for the supply of converter stations at either end of the subsea cable
- Contract signing is a significant milestone for the project as it progresses towards the delivery phase
- EGL2 will be the longest HVDC cable in the UK and the UK’s single largest electricity transmission project ever, providing enough electricity to power two million UK homes
This paragraph outlines the project.
EGL2, a joint venture between SSEN Transmission and National Grid Electricity Transmission (NGET), has reached another milestone in the development of a new subsea electricity superhighway after sealing contracts this week with specialist HVDC cable supplier, Prysmian, and with Hitachi Energy and BAM for the supply of converter stations at either end of the project.
These four paragraphs add more detail.
EGL2 will see the creation of a 525kV, 2GW HVDC subsea transmission cable from Peterhead in Scotland to Drax in England. The longest HVDC cable in the UK and the UK’s single largest electricity transmission project ever, it will provide enough electricity to power two million UK homes.
Prysmian has confirmed it has the capability to deliver the project with its manufacturing facilities for the production of the HVDC cable and its cable laying vessels for the installation in the timescale required for EGL2 to meet its targeted energisation date in 2029, supporting the timely delivery of this project and mitigating risks associated with global constraints in the HVDC supply chain.
Hitachi Energy is partnering with BAM to provide the engineering works and technology for the HVDC converter stations which form the terminals for the HVDC cable and convert direct current to the alternating current used in the onshore transmission network. This latest milestone is another significant step as the project moves towards delivery and, following final approval from Ofgem, work is expected to commence later this year, with a targeted operational date of 2029.
The subsea HVDC cable system is approximately 436km in length with new converter stations at either end to connect it into the existing transmission network infrastructure. HVDC technology provides the most efficient and reliable means of transmitting large amounts of power over long distances subsea.
Note.
- EGL2 can handle 2 GW.
- There is a targeted operational date of 2029.
- Eastern Green Link 2 now has its own web site.
- Most of these links now seem to be HVDC.
A map in the press release, shows the undersea route may be shorter.
It also appears to me, that moving electricity around the UK under the sea, is possibly the most environmentally-friendly and least intrusive way to do it.
We already have four HVDC interconnectors.
There will be many more,
Ørsted Secures Exclusive Access To Lower-Emission Steel From Dillinger
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Ørsted will be offered the first production of lower-emission steel from German-based Dillinger, subject to availability and commercial terms and conditions. The steel plates are intended to be used for offshore wind monopile foundations in future projects.
These three paragraphs outline the deal.
Under a large-scale supply agreement entered into in 2022, Ørsted will procure significant volumes of regular heavy plate steel from 2024, giving the company access at scale to and visibility of the most crucial raw material in offshore wind while supporting Dillinger to accelerate investments in new lower-emission steel production, according to Ørsted.
The Danish renewable energy giant expects to be able to procure lower-emission steel produced at Dillinger’s facility in Dillingen, Germany, from 2027-2028.
Taking the current technology outlook into account, the reduction of the process-related carbon emissions from production is expected to be around 55-60 per cent compared to conventional heavy plate steel production, Ørsted said.
Increasingly, we’ll see lower emission steel and concrete used for wind turbine foundations.
This press release on the Dillinger web site is entitled Historic Investment For Greater Climate Protection: Supervisory Boards Approve Investment Of EUR 3.5 billion For Green Steel From Saarland.
These are two paragraphs from the press release.
Over the next few years leading up to 2027, in addition to the established blast furnace route, the new production line with an electric arc furnace (EAF) will be built at the Völklingen site and an EAF and direct reduced iron (DRI) plant for the production of sponge iron will be built at the Dillinger plant site. Transformation branding has also been developed to visually represent the transformation: “Pure Steel+”. The message of “Pure Steel+” is that Saarland’s steel industry will retain its long-established global product quality, ability to innovate, and culture, even in the transformation. The “+” refers to the carbon-neutrality of the products.
The availability of green hydrogen at competitive prices is a basic precondition for this ambitious project to succeed, along with prompt funding commitments from Berlin and Brussels. Local production of hydrogen will therefore be established as a first step together with the local energy suppliers, before connecting to the European hydrogen network to enable use of hydrogen to be increased to approx. 80 percent. The Saarland steel industry is thus laying the foundation for a new hydrogen-based value chain in the Saarland, in addition to decarbonizing its own production. In this way, SHS – Stahl-Holding-Saar is supporting Saarland on its path to becoming a model region for transformation.
It sounds to me, that Tata Steel could be doing something similar at Port Talbot.
- Tata want to build an electric arc furnace to replace the blast furnaces.
- There will be plenty of green electricity from the Celtic Sea.
- RWE are planning a very large hydrogen electrolyser in Pembroke.
- Celtic Sea offshore wind developments would probably like a supply of lower emission steel on their door-step.
I would suspect, that Welsh steel produced by an electric arc furnace will match the quality of the German steel, that is made the same way.
Japan Expands Offshore Wind Development Into Exclusive Economic Zone
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Japanese Government has passed an amendment to the “Act on Promoting the Utilization of Sea Areas”, expanding the area for setting up offshore wind to the Exclusive Economic Zone (EEZ).
These two paragraphs give more details.
The Japanese government aims to deploy 10 GW of offshore wind capacity by 2030 and 30-45 GW by 2040, including floating wind, as part of its target to reach net-zero emissions by 2050.
The new legislation would allow wind farms to be installed further out to sea from current territorial and internal waters, according to a joint statement by the government, the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism.
The Japanese seem to have devised a simple bid process, that gives rights to generate electricity for thirty years.
But then as a Director of Lockheed told me thirty years ago, the Japanese don’t have the same high levels of lawyers that the US, UK and other countries have, so they can move a lot faster and are easier to do business with.
This Wikipedia entry is entitled Wind Power in Japan.
This is the opening paragraph.
In Japan’s electricity sector, wind power generates a small proportion of the country’s electricity. It has been estimated that Japan has the potential for 144 gigawatts (GW) for onshore wind and 608 GW of offshore wind capacity. As of 2020, the country had a total installed capacity of 4.2 GW.
From the potential of 608 GW of offshore wind capacity, it looks like Japan is in a very similar position to the UK and the Japanese can also reap the wind.
OWLC Selling Rights To Gravity Tripod Offshore Wind Foundation
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The rights to the gravity tripod offshore wind foundation developed by the UK company Offshore Wind Logistics and Construction (OWLC) have been put up for sale following an appointment of administrators who initiated an accelerated sale of the business.
These two paragraphs give full details.
OWLC says its gravity tripod foundation can deliver a solution to the offshore wind industry that is quicker, cheaper and more environmentally friendly than monopiles or jackets.
The foundation, which uses concrete instead of steel, is said to reduce levelised cost of energy (LCOE) between 11 and 12 per cent, according to information on OWLC’s website, which cites BVG Associate’s study from 2020 that also found the gravity tripod to be 51 per cent cheaper than a jacket substructure and 36 per cent cheaper than a monopile to install.
The home page of the OWLC web site gives full details of their Gravity Tripod.
This is the company’s outline description of the foundation.
The Gravity Tripod™, globally patented, is an offshore subsea foundation structure designed to deliver up to 11.7% project cost reduction, to reduce project delivery times by up to 1/3 and create almost zero environmental impact.
The Gravity Tripod™ is a component base structure that benefits from the best aspects of other foundation concepts. It is a hydro-dynamic transparent structure which doesn’t require piling, is manufactured from low-cost tubular sections in a rapid assembly process and is installed with minimal seabed intervention.
The Gravity Tripod™ has two distinctive components that act together to ensure the structure has an extremely long design life (up to 100+ years) and is insensitive to turbine loads with a capacity of up to 25MWs. In addition, the structure has a low bearing pressure on the seabed and so is capable of accommodation a huge range of sediment types, with less seabed preparation required than other gravity-based designs.
Other points include.
- A design life of 100 + years.
- Biodiversity net gain.
- Sheaper to install.
- Designed for water depths of 20-75 metres.
- Easier to install
- No piling.
- Noiseless construction.
- Reduced embedded carbon
I like it and I hope someone buys it and turns it into a success.
UK Onshore Wind Capacity Hits 15GW
The title of this post, is the same as that of this article on reNEWS.BIZ.
This is the sub-heading.
Milestone reached after 30MW West Benhar project entered operations.
These are the first three paragraphs.
RenewableUK has revealed the UK has installed 15,000MW of operational onshore wind capacity.
The project which enabled the UK to cross the threshold was EDF Renewables UK’s 30.1MW West Benhar onshore wind farm in North Lanarkshire, consisting of seven turbines.
The UK now has 2631 operating onshore wind schemes.
These are my thoughts.
I Am Surprised At The Total Of Onshore Wind
The title says it all.
But 15 GW is almost the same power as five big nuclear power stations, the size of the running-late Hinckley Point C.
Should Some Strategically-Placed Battery Energy Storage Systems (BESS) Be Added?
Some wind farms have been built with wind farms and I very much feel, that with some mathematical modelling some excellent BESS sites could be found.
We should also use batteries, so that no wind farm is ever shut down, because too much wind is being generated.
Where Is West Benhar?
West Benhar wind farm has a web site, where this is the sub-heading.
West Benhar is a 7 turbine wind farm capable of powering up to 18,000 homes located near Shotts in North Lanarkshire.
It was opened on 28 February 2024.
This Google Map shows the location of West Benhar between Edinburgh and Glasgow.
West Benhar is North-East of Shotts and just South of the M8.
There’s More Onshore Wind To Come
These onshore wind farms appear to have Contracts for Difference, but have not been completed.
- Arecleoch Wind Farm Extension – 72.8 MW – Completion 2024/25
- Broken Cross – 48 MW – Completion 2024/25
- Chirmorie – 81.6 MW – Completion 2024/25
- Cumberhead West – 126 MW – + 40 MW BESS – Completion 2024/25
- Douglas West Extension – 78 MW – Completion 2024/25
- High Constellation – 50 MW – Completion 2024/25
- Kilgallioch Windfarm Extension – 51.3 MW – Completion 2024/25
- North Kyle – 206 MW – Completion 2024/25
- Stornoway – 200 MW – Completion 2024/25
- Stranoch – 84 MW – Completion 2024/25
- Viking – 443 MW – Completion 2024
All of these are in Scotland.
But that’s another 1,440.7 MW of onshore wind.
Community Wind Funds
Scotland seems to be continuing to build onshore wind farms.
Could it be that communities have seen the benefits of Community Wind Funds?
This is said about the fund at Stronach.
When operational, EDF Renewables will provide a community benefit fund in line with the Scottish Government Good Practice Principles for Community Benefits from Onshore Renewable Energy Developments. The fund value for the community benefit fund would be £5,000 per megawatt for the lifetime of the wind farm. In the coming months we will begin to form a Community Liaison Group with local interested parties to decide how the funds will be disseminated once the wind farm becomes operational.
If the fund is yearly, then £420,000 is not money to be sneezed at!
Conclusion
It looks like in Scotland that Community Wind Funds promote the building of onshore wind.
Plans Progress To Build World’s Largest Tidal Scheme On The Banks Of The River Mersey
The title of this post, is the same as that of this press release from the Liverpool City Region.
These four bullet points, act as sub-headings.
- Mersey Tidal Power has the potential to become the world’s largest tidal scheme
- Formal planning process for UK’s “first of a kind” Mersey Tidal Power set to begin
- Potential to manage environmental issues associated with climate change
- Scheme would need government backing to complete development stage
These three paragraphs introduce the project.
Advanced proposals to build the world’s largest tidal scheme on the banks of the River Mersey have been unveiled by the Liverpool City Region’s Mayor Steve Rotheram.
Mayor Rotheram has revealed that the city region will pursue a barrage between the Wirral and Liverpool as the preferred option for the city region’s flagship Mersey Tidal Power project.
The barrage scheme – the “first of a kind” in the UK – could generate clean, predictable energy for 120 years and create thousands of jobs in its construction and operation.
Note.
- This page on the Liverpool City Region, has this explanatory video.
- This brochure can also be downloaded.
At a first glance all the documentation is very professional.
These are my thoughts.
How Much Power Will The Mersey Tidal Project Generate?
This graphic from the brochure shows electricity generation in Liverpool Bay.
Note.
- The dark blue circles are the thirteen existing wind farms, that have a total capacity of 3 GW.
- The yellow circles are four new wind farms, that will be built by 2030 and will have a total capacity of 4 GW.
- The Mersey Tidal Project will have 28 x 25 MW turbines and generate 700 MW.
I also suspect that the power generation will be supplemented by a large battery, that will smooth out the electricity, when the wind isn’t blowing and the tides are at the wrong cycle.
Access For Ships To The Tranmere Oil Terminal And The Manchester Ship Canal
This article on the Liverpool Business News is entitled £6bn ‘Barrage Across The Mersey’ Takes Step Forward.
This is the introductory paragraph.
Steve Rotheram says his £6bn Mersey Tidal Power project will see a barrage across the river, with locks to allow ships through, but original 2030 switch-on now looks unlikely.
The article has a picture which could show locks on the Wirral side of the Mersey.
This Google Map shows the location of the Tranmere Oil Terminal and the Manchester Ship Canal.
Note.
- Birkenhead is in the North-West corner of the map.
- The line of white squares running parallel to the River Mersey, indicate the stations of the Wirral Line to Chester and Ellesmere Port.
- The Tranmere Oil Terminal is indicated by the red arrow at the top of the map.
This second Google Map expands the area on the West bank of the Mersey, at the bottom of the map.
These are Eastham Locks, which allow ships to enter and leave the Manchester Ship Canal.
This third Google Map shows the area around the Tranmere Oil Terminal.
As before the Tranmere Oil Terminal is indicated by the red arrow, with Cammell Laird to the North.
The Liverpool Business News article says this about oil tankers, that use the Mersey.
In terms of oil tankers alone, there are more than 700 vessels coming in and out of the Mersey every year. Supertankers berth at the Tranmere Oil Terminal next to the Cammell Laird shipyard and around 500 smaller vessels berth at Stanlow at Ellesmere Port.
LBN understands that some form of lock system will be incorporated into the barrage to allow ships in and out. That might prove tricky for supertankers which suggests the barrage would be down river from the Tranmere terminal.
This Google Map shows the Manchester Ship Canal as it goes East from Eastham Locks.
Note.
- The Manchester Ship Canal clings to the South Bank of the Mersey.
- The red arrow indicates Stanlow Refinery,
- There is a lot of industry on the South Bank of the Manchester Ship Canal.
It would appear that access to the Manchester Ship Canal gives access to several important places other than Manchester.
Access To Garston Docks
This Google Map shows the Liverpool Bank of the Mersey.
Note.
- The blue marker in the North-West corner of the map indicates the Royal Albert Dock.
- Garston Docks are in the South-East corner of the map
- There are no docks between Liverpool and Garston and much of the route can be walked along the Mersey.
- On the other bank of the Mersey, note the green ship at the Tranmere Oil Terminal, that can be seen in other maps.
This second Google Map shows Garston Docks.
Note.
- There are three docks.
- The Garston Channel and the Old Garston River provide a route for ships to enter or leave the docks.
The Wikipedia entry for the Port of Garston, indicates that the port is rather run-down and a shadow of its former self.
It would appear that ships would have to pass through the locks in the barrier, which would likely be on the Wirral bank, to gain access to the Manchester Ship Canal and then cross the Mersey for Garston.
However, the barrier is built, it must have a route to both the Tranmere Oil Terminal and the Manchester Ship Canal at Eastham Locks.
The barrier could be built either North or South of the Tranmere Oil Terminal.
- If built North of the oil terminal, the locks in the barrier will have to accommodate the largest supertanker that calls at the terminal.
- If built South of the oil terminal, the locks in the barrier would only have to accommodate the largest ship that needed to use the Manchester Ship Canal or visit Garston.
One option would probably be more affordable.
Barrage Cross The Mersey
The very informative Liverpool Business News article, explains why a barrage was chosen, in this paragraph.
After pondering whether to build a barrage across the river from Liverpool to Wirral, or a floating lagoon, the Combined Authority has chosen the former as it would be cheaper and also creates a bridge that could have a pedestrian and cycle link.
The choice of a barrage sounds sensible on grounds of cost and accessibility.
LionLink: Proposed Windfarm Cabling Sites In Suffolk Are Revealed
The title of this post, is the same as that of this article on the BBC.
This is the sub-heading.
National Grid has revealed where it wants to build energy infrastructure for cabling between the UK and the Netherlands.
These four paragraphs describe the project.
The power line, called LionLink, would connect offshore wind farms in the North Sea.
The energy company wants the cables to reach land at either Walberswick or Southwold, both in Suffolk.
A converter station would be built on the outskirts of nearby Saxmundham and could cover a six-hectare area.
That would then connect to a substation being built at the village of Friston, also in Suffolk, as part of the offshore wind plans.
But the plans have brought the Nimbies out in force.
This Google Map shows the Suffolk Coast, to the South of Southwold.
Note.
- Southwold and Walberswick in the North-East corner of the map.
- Saxmundham is just up from the South-West corner of the map, with Friston to its East.
- Sizewell with the 1.2 GW Sizewell B nuclear power station is on the coast directly East of Saxmundham.
- Sizewell B is planned to be joined by the 3.2 GW Sizewell C nuclear power station.
- LionLink is likely to have a capacity of 2 GW.
- I also believe that at least another GW of offshore wind power will be squeezed in along this section of coast.
The Sizewell site is connected to the National Grid at Bullen Lane substation to the West of Ipswich.
These pictures show the pylons that were built in the 1960s to connect Sizewell A to the National Grid.
I doubt, they would be allowed to be erected today.
One alternative would be to use T-pylons, like these built to connect Hinckley Point C to the National Grid.
There is more on T-pylons in this press release from National Grid, which is entitled National Grid Energise World’s First T-Pylons.
This Google Map shows the area between Ipswich and the coast.
Note.
- Sizewell is in the North-East corner of the map.
- Felixstowe, Harwich and Freeport East are at the mouth of the rivers Orwell and Stour.
- The Bullen Lane substation is to the West of Ipswich and shown by the red arrow.
Looking at maximum power flows in Suffolk and Somerset, we get.
- North-East Suffolk to the National Grid at Bullen Lane – 7.4 GW.
- Hinckley Point C to the National Grid – 3.26 GW.
I am led to the conclusion, that there need to be a doubling of the pylons between North-East Suffolk and Bullens Lane.
I can understand why the Nimbies have been aroused.
I believe that National Grid will have to take the undersea route along the coast of Essex and Suffolk, to get the electricity to its markets.
Cummins Inc. Selected By The UK Department Of Transport For Its High-Horsepower Methanol Vessel Retrofit Project
The title of this post, is the same as that of this press release from Cummins.
This is sub-heading.
One of Only 10 Flagship Projects Chosen in the Multi-Million-Pound ZEVI Competition Enabling Decarbonization of the UK’s Maritime Sector
These three paragraphs outline the project.
Today, Cummins Inc. (NYSE: CMI) announced the selection of its proposal to jointly develop a Methanol Kit for its QSK60 engine as part of the Zero Emission Vessels and Infrastructure (ZEVI) competition, funded by the UK Government and delivered in partnership with Innovate UK. To be chosen as one of the top 10 projects, Cummins delivered a proposal to collaborate with a major UK port and operators to develop, deploy and operate clean maritime technology solutions on the path to decarbonization and reduction to the overall greenhouse gas footprint.
The £4.4M in total funding will be leveraged by Cummins and its fellow project stakeholders — Ocean Infinity, the Aberdeen Harbour Board, and Proman AG — in the deployment of a UK-designed and built methanol conversion kit for a high-horsepower marine internal combustion engine, offering the UK an important foothold in enabling the transition to cleaner maritime fuels.
Upon completion in the second quarter of 2025, the project targets a reduction in CO2 emissions of 50 percent for offshore operations of the vessel with NOx, SOx and PM at levels considerably below those emitted by conventional fuel. Furthermore, all retrofitted dual-fuel engines will achieve compliance with IMO Tier III emission standards.
They certainly aim to get a move on to complete by mid-2025.
I have some thoughts.
Methanol Fuel
The Wikipedia entry for methanol fuel, starts with this sentence.
Methanol fuel is an alternative biofuel for internal combustion and other engines, either in combination with gasoline or independently. Methanol (CH3OH) is less expensive to produce sustainably than ethanol fuel, although it produces more toxic effects than ethanol and has lower energy density than gasoline. Methanol is safer for the environment than gasoline, is an anti-freeze agent, prevents dirt and grime buildup within the engine, has a higher flashpoint in case of fire, and produces horsepower equivalent to that of super high-octane gasoline.
Methanol certainly seems to be an environmentally-friendly fuel, when compared to alternatives.
Production Of Green Methanol
This paragraph from the Wikipedia entry for methanol fuel, explains some of the routes to make green methanol.
Bio-methanol, also known as green-methanol, may be produced by gasification of organic materials to synthesis gas followed by conventional methanol synthesis. This route can offer renewable methanol production from biomass at efficiencies up to 75%. Widespread production by this route has a proposed potential to offer methanol fuel at a low cost and with benefits to the environment. Increasingly, methanol fuel has been produced using renewable energy and carbon dioxide as a feedstock. Carbon Recycling International, an Icelandic-American company, completed the first commercial scale renewable methanol plant in 2011. As of 2018, Enerkem has been producing biomethanol through the conversion and gasification of municipal solid waste at its Edmonton facility. As of July 2023, construction for the $1 billion Varennes Carbon Recycling Plant, which will produce biofuel such as methanol through non-recyclable and timber waste, is 30 percent complete.
Surely, if the C in CH3OH, which is the chemical formula for methanol, comes from captured carbon dioxide from the atmosphere or say a gas-fired power station, methanol can be a truly green fuel.
UK’s Green Power Industry Receives Surprise £10bn Pledge
The title of this post, is the same as that of this article in the Guardian.
This is the sub-heading.
Potential investment by NatPower would create largest portfolio of battery storage projects in Britain
These five paragraphs outline the proposed investment.
Britain’s under-pressure green power industry has received a surprise fillip after a renewables developer pledged to plough £10bn into what would become the largest portfolio of battery storage projects in the country.
NatPower, a UK startup that is part of a larger European energy group, is poised to submit planning applications for three “gigaparks”, with a further 10 to follow next year.
Battery storage projects are seen as a key part of the jigsaw to decarbonise Britain’s power grid, allowing electricity generated by wind turbines and solar panels to be stored for use when weather conditions are still or not sunny.
The NatPower investment would lead to the construction of 60 gigawatt hours of battery storage, with solar and wind projects also in the pipeline.
The two gigaparks would be located in the north of England, with a further site in the west of the country planned later this year. The projects would be built on industrial land, and also through leasing deals with farmers.
Note.
- To gauge the scale of this development; the largest energy storage development in the UK at present is SSE Renewable’s massive Coire Glas pumped storage hydro in the Highlands of Scotland, which is a 1.5 GW/30 GWh monster, that is budgeted to cost £1.5 billion.
- NatPower has a web site, which has an opening video, which is all landscape, sun, water and wind, that would be worthy of an epic from Hollywood or by Eisenstein.
- NatPower’s investment of £10 billion, buys them 60 GWh of storage and if it’s a proportionate amount of capacity to Coire Glas, perhaps around 3GW or around the capacity of Hinckley Point C.
I have a few thoughts.
Is It All A Hoax?
Those who were alive and sober in 1977, may well remember the April Fools’ Day Hoax of the Guardian of that year, which concerned a fake supplement in the paper promoting the island of San Serriffe.
The story has its own Wikipedia entry.
The web site; http://www.sanserriffe.com, doesn’t seem to be accessible.
Today’s story seems genuine, although some will smell a rat.
UK Set To Provide Record GBP 800 Million Support For Offshore Wind Projects
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The UK government has revealed the budget of over GBP 1 billion (approximately EUR 1.2 billion) for this year’s Contracts for Difference (CfD) Allocation Round 6 (AR6) with the majority of it, GBP 800 million (around EUR 936 million), earmarked for offshore wind.
These three paragraphs explain the three pots.
The Department for Energy Security and Net Zero (DESNZ) confirmed that over GBP 1 billion will be set aside for the budget, divided into three pots.
Within the overall budget, GBP 120 million is designated for established technologies like solar and onshore wind in Pot 1, while GBP 105 million is set aside for emerging technologies such as floating offshore wind and geothermal in Pot 2.
According to DESNZ, following an extensive review of the latest evidence, including the impact of global events on supply chains, the government has allocated a record GBP 800 million for offshore wind, making this the largest round yet, with four times more budget available to offshore wind than in the previous round.
I am glad to see the support for geothermal energy.
Whilst, these three paragraphs explain the pricing.
This follows the increase in the maximum price for offshore wind and floating offshore wind in November and will help to deliver the UK’s ambition of up to 50 GW of offshore wind by 2030, including up to 5 GW of floating offshore wind, according to the government.
Last year, CfD Round 5 attracted no investors with the former maximum strike prices set at GBP 44/MWh for offshore wind with fixed-bottom foundations, which was too low for the developers who were facing the consequences of inflation and supply chain challenges. The maximum bid price for floating wind was GBP 114/MWh.
Now, the maximum price available for offshore wind projects with fixed-bottom foundations has risen by 66 per cent, from GBP 44/MWh to GBP 73/MWh. The maximum strike price for floating offshore wind projects increased by 52 per cent, from GBP 116/MWh to GBP 176/MWh ahead of AR6 which will open on 27 March.
Prices have certainly risen, but this paragraph explains a limiting mechanism, which is straight out of the Control Engineer’s Toolbox.
The funding for the support will be sourced from energy bills rather than taxation. However, if the price of electricity surpasses the predetermined rate, additional charges will be applied to wind power, with the excess funds returned to consumers.
I would hope that extensive mathematical modelling has been applied to test the new pricing structure.
The Anonymous Widower 