RWE, the UK’s leading power producer, has been awarded Contracts for Difference (CfD) for five of its renewable energy projects in the latest Allocation Round 6 (AR6).
The CfD awards have been made to RWE by the Low Carbon Contracts Company, on behalf of the UK Government, following successful bids for two onshore and three solar PV projects (see table below). The inflation-indexed strike price for RWE’s onshore projects was £50.9/MWh and for solar £50.07/MWh (based on 2012 prices).
The RWE projects together account for 218 megawatts (MW) of new UK renewable electricity generation capacity, capable of powering hundreds of thousands of homes, supporting local supply chains and jobs, and making an important contribution to the UK’s ambitions for clean power and security of supply. RWE intends to maintain the pace of investment with an ambition to invest up to €8 billion net from 2024 to 2030 in new UK clean energy infrastructure which, this year alone, has seen the ongoing construction of its flagship 1.4 GW Sofia Offshore Wind farm, three onshore wind farms in Scotland and seven solar PV projects in England, of which three are co-located with batteries.
Tom Glover, RWE UK Country Chair:
“As the UK’s leading power generator and a key partner in delivering the UK Government’s ambition of clean power by 2030, we are delighted to have secured contracts for five projects, representing a combined potential installed capacity of 218 megawatts.”
“Today’s auction success underlines RWE’s position as one of the UK’s leading onshore wind and solar developers. In addition to our 32 onshore wind projects in operation, we’re progressing with the construction of seven new solar and three onshore wind projects and look forward to enhancing our portfolio even further with the contracts announced today.”
“Whilst we are delighted with the success of onshore and solar in this year’s auction, we would note that at 3.4 GW, today’s round only procured around 35% of the total eligible pipeline of new offshore wind projects. If the Government wants to deliver on its target to quadruple offshore wind to 60 GW by 2030, it will need to significantly ramp up procurement. It is therefore important that the Government urgently review and confirm the parameters for next year’s auction, and ensure it takes place as planned next summer. As a key partner, RWE looks forward to continuing to work closely with the Government on the shared ambition of ensuring the UK retains its world-leading position in offshore wind.”
RWE is the leading power generator in the UK, supplying the equivalent of around 12 million typical UK homes each year with power. It operates a diverse portfolio including gas, onshore wind, offshore wind, hydro and biomass with a combined operational capacity of over 10 GW (RWE pro rata share)/12 GW (total installed capacity). In addition, the company has a strong pipeline, and is planning to scale-up from the current portfolio of 32 operational onshore wind farms (735 MW, pro rata share) with a further ~170 MW in construction and ~2 GW in development. The company is also currently constructing seven solar PV projects comprising 330 MW in total, of which three are co-located with batteries, with a further 4.4 GW of solar PV under development.
In the UK RWE also has nine offshore wind farms in development, and one in construction – Sofia. At 1.4 GW, Sofia is RWE’s largest offshore wind farm to date and, once operational in 2026, will generate enough power for approximately 1.2 million homes. In total, RWE’s offshore wind development pipeline amounts to 7.0 GW pro rata share (9.8 GW total installed capacity) thus making it a critical partner in helping the Government achieve its target of deploying 60 GW of offshore wind capacity by 2030.
Complementing its renewables pipeline, RWE has more than 3.7 GW of battery storage under development, and is in the early stages of developing four gas carbon capture and storage (CCS) projects across the UK, totaling up to 4.6 GW.