The latest round of renewable energy auctions has produced no new bids for offshore projects, with developers citing the price set under the Contracts for Difference agreements as being too low to make economic sense.

However, 95 deals were made for solar, tidal and onshore wind projects, with the Department for Energy Security and Net Zero pointing to several agreements and, for the first time, geothermal projects, having gained funding.

The lack of offshore interest is not unique, other European countries have had similarly disappointing results, but there will be a setback toas the Government attempts to create 50GWof offshore wind by 2030.

Rising costs of materials and labour have squeezed the margins under which operators and developers could make a margin. Contracts for Difference guaranteeing a price for the power produced, with the Government making up the difference if wholesale prices fall below that price, high wholesale prices mean the opposite and paying the Government. Since the Ukraine war began, wholesale prices are high, and with rising costs, no bids were likely to be risked.

Commenting on the results, the co-chair of the Offshore Wind Industry Council, Richard Sandford, said: “It’s clear that this year’s auction represents a missed opportunity to strengthen Britain’s energy security and provide low-cost power for consumers. If all the offshore wind projects eligible to bid into this auction had done so, we could have powered the equivalent of more than five million British homes a year. So, lessons must be learned to ensure that the parameters of the auction are set correctly in the future. The landmark report published earlier this year by the Government’s offshore wind champion Tim Pick shows how the industry can grow successfully in the years ahead.”

If offshore is suffering, alternative renewables have indeed seen a boost, and onshore wind will see lighter planning restrictions. Coming in via an amendment to the Energy Bill, new measures will allow faster processes and communities to apply to their local council to have onshore wind turbines in their area.

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