UK’s CfD AR6: Fresh tailwinds – or further crosswinds – for UK offshore?

March 18, 2024
2 min read
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After the fall-out from offshore wind developers’ boycott of UK’s CfD AR5 auction last year, all eyes are on the follow-on round that opens this month to see if it will be able to reboot the once world-leading play. But the 800 mGBP budget announced by the government for CfD AR6 has immediately met a mixed reaction, with concerns voiced by industry that this sum will be insufficient to make up for lost momentum, even though it's the largest budget in CfD history.

Today Aegir Insights’ Head of Research Maria Holm Bohsen and Chief Executive Editor Darius Snieckus hosted a Wavelength Intelligence Briefing, where they discussed what impact Westminster’s rejigged auction strategy will have on the success of CfD AR6; how developers will need to re-train their focus to create winning – and economically viable – projects, and what it could all mean to the pace of build-out in the UK market as it repositions to reach the government’s ambitious 50 GW by 2030 target.

Watch the recording of our latest Wavelength below:

Aegir Insights Market Insights report on the UK's upcoming CfD AR6

Competition in UK’s upcoming CfD AR6 auction is expected to be fierce, with developers needing to laser-focus on how to create winning – and economically viable – projects. Faced with pressures from inflation and economic uncertainty, developers need to make informed, data-driven decisions. This is where Aegir Insights’ tool kit can support in all the essential considerations leading up to an auction.

Aegir’s latest intelligence, our new Market Insights report, offers exclusive analysis and insights to sharpen your understanding of the AR6 and what factors could be decisive in determining the outcome of this auction (available to our subscribing clients).

Featured in our report:

  • Context for the AR6 auction, historic strike prices, budgets and capacity
  • Eligible projects, auction design and comprehensive timeline
  • Advanced modelling of outcome scenarios and project-specific strike price expectations
  • Overview of factors beyond pure project economics that could influence developers' bidding

Aegir Insights’ offshore wind decision solutions can support developers in the essential analysis leading up to an auction, including competitor identification, portfolio analysis, or advanced scenario modelling and Monte Carlo simulations – giving you a head start in better-understanding your competitors’ capabilities.

Reach out to us for more information on our new UK AR6 Market Insights report and to learn more about our CfD AR6 bid analysis and advanced modelling solutions.

Tagged: Europe · Market Intelligence · UK

Aegir Insights provides industry-leading intelligence powered by data science for offshore wind energy developers, governments and financial institutions.

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Aegir Insights

Aegir Insights
Havnegade 27,
1058 Copenhagen,

CVR no.: 39104792

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