The UK Government has announced a landmark green energy deal, securing a record amount of new offshore wind power in its latest subsidy auction. The move includes two significant projects in Welsh waters that together could provide clean electricity for close to a million Welsh homes.
Record-Breaking Auction Powers UK's Green Ambitions
In its seventh Contract for Difference (CfD) auction round, the Department for Energy Security and Net Zero has secured 8.4 gigawatts (GW) of new offshore wind capacity. This represents a record volume of power purchased and is a crucial step towards the government's target of removing fossil fuels from the UK's electricity supply by 2030.
The new projects are forecast to generate enough electricity for 12 million homes nationwide, attract approximately £22 billion in private investment, and support around 7,000 jobs. Energy Secretary Ed Miliband hailed the results as a "historic win" for Britain's energy sovereignty, moving away from reliance on volatile international fossil fuel markets.
Welsh Waters Set for Major Development
Two Welsh projects were successful in the highly competitive auction. The Awel y Mor scheme, developed by German-owned energy giant RWE, will be located off the North Wales coast in the Irish Sea, roughly 10 kilometres from Llandudno.
This is the first Welsh project to win a CfD contract in over a decade. It will feature up to 50 turbines with a maximum height of 332 metres and have a potential capacity of 1,100 megawatts. During construction, it is expected to create and safeguard about 2,000 jobs and could power up to 900,000 homes. Construction could begin as soon as next year.
The second project, named Erebus, is a pioneering floating offshore wind venture in the Celtic Sea, off the Pembrokeshire coast. It is being developed by joint venture company Blue Gem Wind. This technology uses turbines mounted on floating platforms, opening up deeper waters for wind energy generation.
Economic Boost and Energy Security
Both the Awel y Mor and Erebus projects are slated to become operational by 2030-31. Their combined investment is estimated at £2.6 billion. The strike price secured for the offshore wind power in this auction averages £91 per megawatt hour (MWh), which is about 40% lower than the cost of building and operating a new gas-fired power station.
Jessica Hooper, director of RenewableUK Cymru, stated the auction "sends a clear signal that [Wales] is open for clean energy investment." She emphasised that offshore wind is central to delivering secure, affordable power as electricity demand rises.
Secretary of State for Wales, Jo Stevens, called the announcement "huge news," highlighting its potential to deliver thousands of well-paid, highly-skilled jobs. Laura Emily Dunn from the Energy and Climate Intelligence Unit noted that every new turbine helps shield Welsh consumers from unpredictable global energy market shocks.
The success of the Erebus project is seen as a critical first step in unlocking the vast floating wind potential of the Celtic Sea, paving the way for much larger projects planned for the region by 2035.
