With low capacity a likely outcome of its fifth CfD auction, can the UK reach its target of 5 GW floating wind by 2030?

June 2, 2023
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2 min read
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The UK’s CfD scheme has a proven track record of accelerating the build-out of offshore wind projects in the UK. Will it do the same for floating wind, and will that be enough to reach the UK’s target of 5 GW floating wind by 2030?

The fifth CfD Allocation Round (CfD AR5) is the second CfD auction in the UK to include floating wind. The prequalification for the auction closed last week, and qualified developers will submit theirs bids during the summer.

No separate pot of money for floating wind in AR5

Unlike the CfD AR4 auction, which awarded support to the 32 MW TwinHub project, the current auction round does not have a ring-fenced budget for floating wind. This means that floating wind has to compete with other emerging technologies, and with a history of significant reductions of CfD strike prices, it sets the scene for tough competition.

Based on the available budget and the projects eligible for participation, one likely outcome of the auction could be allocation of support for around 100 MW floating wind. This leaves quite a way to go to reach the 5 GW target by 2030.

Will the UK's CfD allocation round 6 have more money for floating wind?

Much now depends on how much support floating wind can get in next years’ CfD AR6 auction, and on whether other routes-to-market emerge for floating wind in the UK.

Aegir Insights recently analyzed the CfD AR5 and what the outcome may mean for floating wind developers and floater concepts. This is part of our Market Insights coverage, where we will continue to follow the UK CfD auctions closely.

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