Remote island wind (RIW) projects may struggle to be awarded capacity in upcoming tender rounds due to the absence of a price floor, the government has admitted. Projects on remote islands — defined as UK islands at least 10km from the mainland — will be eligible to take part in the next wave of CfD auctions, due to take place in May 2019. In an impact assessment, the UK government’s department for business, energy and industrial strategy (BEIS) stated its preference of classifying RIW projects as a “distinct sub-class of generating station” and as a less-established “Pot 2” technology. This is because they would “be unlikely to be competitive against other more established technologies” — which includes onshore wind and solar PV — in ‘Pot 1’. If they cannot compete with other ‘Pot 2’ technologies, however, RIW projects will not be awarded a contract. BEIS added that the extent to which such projects are able to compete against other ‘Pot 2’ technologies is “highly uncertain”.
Wind Power Monthly 31st Aug 2018 read more »