Location, location, location – the Celtic Sea is well placed for direct price competition across the UK’s floating wind projects
The Crown Estate is currently running the Celtic Sea leasing round, providing an opportunity of developing 4.5 GW of floating offshore wind. With pre-investigated sites and ring-fenced grid, the designated auction sites differ from previous leasing rounds held in the UK.
Further, the sites in the Celtic Sea benefit from the location grid (TNUoS) tariffs compared to the Northern sites in Scotland.
TNUoS tariffs in the UK, i.e., charges for distributing electricity through the onshore network, are more favorable in the South of the country where generation assets are in close proximity to demand centers.
Consequently, the ScotWind sites, being far from demand centers, would bear significantly higher grid charges if connecting to the national grid, having a significant negative business case impact for developers.
This large difference in tariffs presents the Celtic Sea sites with a competitive price advantage compared to the Scottish sites.
This topic is being addressed in Aegir Insight’s new UK Playbook, which offers a comprehensive coverage of the market and analysis of the coming opportunities, including:
🔹Impact modelling of the TNUoS tariff on the ScotWind and Celtic Sea floating offshore wind sites using our tool Aegir Quant.
🔹An overview of initiated reforms of the TNUoS tariff and grid planning.
🔹A look at how the market is progressing within the different regions and what is needed to deliver the many GW’s in planning.
Reach out to us here to learn more about Aegir Insights’ intelligence offerings, advanced commercial tool kit, and how we can help you make the best investment decisions in offshore wind.
Stay up-to-date with development in offshore wind and new analysis by Aegir Insights
Delivered straight to your inbox, Aegir Insights' intelligence newsletter will sharpen your market insight with exclusive analysis on key markets, developments, and technologies shaping offshore wind.