Steps have also been taken to bolster developer spending with UK businesses. In 2020, the industry set a target of 60% UK content in domestic projects by 2030, up from an existing target of 50%, as part of a sector agreement with the government.
Companies are also asked to detail their supply chain plans in a questionnaire before they can bid for government support in the form of a guarantee on the price paid to them for electricity, known as a contract. difference (CfD).
In July 2021, the government announced reforms allowing it to strip companies of CfDs if they fail to meet the commitments they have made. “The program upgrades will help the offshore wind industry meet its commitment to ensure that 60% of the manufacturing for wind farm projects is based in the UK,” he said at the time.
However, it is understood that there is no legal obligation to use UK contractors. Crown Estate Scotland asked similar questions ahead of its recent successful seabed licensing round, but said that in 2020 the information would “not form part of any scoring relating to the selection of winning applications”.
The UK government’s CfD supply chain questionnaire is said to be at the heart of a potential challenge from the European Commission. Ministers are expected to believe the rules comply with all legal obligations and have a strong defense case.
A government spokesperson said it had spoken with the EU about its concerns, adding: “We are waiting to see what action they might take, but would contest any challenge the EU takes against the UK at this point. topic.
“CfD auctions are an essential part of our efforts to reduce the cost of renewable energy. The application process does not require developers to use UK content, as the EU claims.” He doesn’t expect any interruptions to his next round of CfD.