Two offshore wind projects in Wales which could provide enough clean power for almost one million homes have been successful in the UK Government’s latest offshore wind auction.
RenewableUK Cymru, which represents the renewable energy industry in Wales, said the move marked “a significant step change for the nation’s role in the UK’s renewable energy transition”.
Wales secured two of the eight successful offshore wind projects. The successful Welsh projects are RWE’s Awel y Môr fixed-bottom offshore wind farm off the North Wales coast, and Blue Gem Wind’s Erebus floating offshore wind test and demonstration project off the Pembrokeshire coast.
Together, the projects represent enough clean electricity to power almost one million homes and around £2.6 billion of investment opportunity into Wales’ coastal and industrial communities. Both projects are expected to be delivered by 2030–31.
The auction round, known as Contracts for Difference AR7, secured a record capacity of 8.4GW of offshore wind in total, which the UK Government said would generate enough clean electricity to power the equivalent of 12 million homes.
RenewableUK Cymru said the Welsh projects would also deliver long-term value for billpayers, adding that “offshore wind remains one of the cheapest forms of new electricity generation in the UK, helping to reduce Wales’ reliance on imported fossil fuels and protect consumers from sudden price shocks”.
The organisation said that over the past decade Wales had captured less than 2% of the capacity awarded through UK clean energy auctions, while England and Scotland have secured the vast majority.
It said the news was particularly significant for coastal and industrial areas such as Port Talbot as offshore wind offers a major opportunity for skilled employment, supply-chain growth and private sector investment.
Jessica Hooper, Director of RenewableUK Cymru, said:
“The auction results show what is possible when Wales competes at scale and sends a clear signal that it is open for clean energy investment.
“With electricity demand set to rise rapidly as transport, heating and industry electrify, offshore wind will be central to delivering secure, affordable, home-grown power. Wales’ success in this auction shows that we can play a leading role – but maintaining momentum will be critical if we are to anchor jobs, investment and long-term economic value here in Wales.”
The Awel y Môr Offshore Wind Farm is being developed by RWE on behalf of project partners for an area of seabed to the west of the existing Gwynt y Môr Offshore Wind Farm which at its nearest point is approximately 10.5km off the Welsh coast in the Irish Sea.
Once completed it will generate power equivalent to the needs of more than half of Wales’ homes, as well as creating opportunities throughout its construction, operation, and eventual decommissioning phases, the developer said.
Philippa Powell, Project Lead for Awel y Môr, said:
“With this successful Contracts for Difference award, one of Wales’s largest renewable energy investments can now progress toward the next phase of development with confidence.
“Our next steps will include further onshore and offshore site investigations ahead of construction, while continuing to work closely with local communities, suppliers and stakeholders.”
Blue Gem Wind – a joint venture between Celtic Sea energy developer Simply Blue Energy and energy company TotalEnergies – is set to deliver the 96MW demonstration project Erebus, which is 45 km offshore.
Hugh Kelly, CEO of Simply Blue Group, said:
“We welcome the announcement of the AR7 results, particularly the awarding of a Contract for Difference for our Erebus project. This is a milestone for the project and for floating offshore wind in the Celtic Sea.”
RenewableUK Cymru said the success of the Erebus floating offshore wind project is particularly important for South and West Wales. As a test and demonstration project, Erebus will be a critical first step in unlocking the huge floating offshore wind opportunity in the Celtic Sea, the organisation said, helping to demonstrate the technology, reduce costs and build confidence ahead of much larger projects planned for the region by 2035.
It added:
“These early floating projects act as a stepping stone for the Welsh economy – giving ports, supply chains and workers the chance to develop the skills and experience needed to capture the much larger investment and job opportunities that floating offshore wind can bring.”
A Celtic Freeport spokesperson said:
“Today’s AR7 announcement, alongside the success of Erebus, adds further momentum to the growth of floating offshore wind in the Celtic Sea, as we move towards commercial-scale developments rooted in Welsh ports in the years to come.”
Secretary of State for Wales Jo Stevens said:
“Today’s announcement is huge news for Pembrokeshire and North Wales. It is a massive a vote of confidence in Wales’ clean energy industry which is already delivering the well-paid, highly-skilled jobs of the future with the potential to bring thousands more.
“The UK Government is working with investors to develop home-grown clean power which will secure our energy supply and bring down bills for good. These new projects in the seas off Wales will help us achieve those goals.”
