www.nytimes.com
Open in
urlscan Pro
151.101.129.164
Public Scan
URL:
https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html
Submission: On September 09 via manual from US — Scanned from GB
Submission: On September 09 via manual from US — Scanned from GB
Form analysis 2 forms found in the DOM
POST https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083
<form method="post" action="https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083"
data-testid="MagicLinkForm" style="visibility: hidden;"><input name="client_id" type="hidden" value="web.fwk.vi"><input name="redirect_uri" type="hidden"
value="https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083"><input
name="response_type" type="hidden" value="code"><input name="state" type="hidden" value="no-state"><input name="scope" type="hidden" value="default"></form>POST https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083
<form method="post" action="https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083"
data-testid="MagicLinkForm" style="visibility: hidden;"><input name="client_id" type="hidden" value="web.fwk.vi"><input name="redirect_uri" type="hidden"
value="https://nytimes.app.goo.gl/?link=https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html&apn=com.nytimes.android&amv=9837&ibi=com.nytimes.NYTimes&isi=284862083"><input
name="response_type" type="hidden" value="code"><input name="state" type="hidden" value="no-state"><input name="scope" type="hidden" value="default"></form>Text Content
Skip to contentSkip to site index Search & Section Navigation Section Navigation SEARCH Business SUBSCRIBE FOR £0.50/WEEKLog in Saturday, September 9, 2023 Today’s Paper Business|No Bidders in British Offshore Wind Auction https://www.nytimes.com/2023/09/08/business/no-bidders-in-british-offshore-wind-auction.html * Share full article * * Advertisement SKIP ADVERTISEMENT Supported by SKIP ADVERTISEMENT NO BIDDERS IN BRITISH OFFSHORE WIND AUCTION By Stanley Reed Reporting from London Sept. 8, 2023 * Share full article * * * Read in app THE NEWS The British government said Friday that no offshore wind developers had offered a bid in its latest auction of renewable energy contracts, dealing the latest in a series of setbacks to what has been the country’s flagship renewable energy technology. Developers stayed away because the minimum price support being offered was not high enough. The news, which was expected, produced criticism from the opposition Labour Party and environmental groups. Ed Miliband, Labour’s spokesman for energy, told the BBC on Friday that the results were an “absolute disaster” that the government should have foreseen. Image All aspects of wind farm development, from turbines to steel and copper, are facing higher costs, developers say.Credit...Andy Buchanan/Agence France-Presse — Getty Images WHY IT MATTERS: WIND DEVELOPERS SAY THEY ARE FACING STEEP COSTS. The failed auction is the latest blow to offshore wind, a technology that governments and utilities in Europe and the United States are betting on to deliver large amounts of clean electric power to tackle climate change. The British government, for instance, aims to triple offshore generating capacity by 2030. Hit with rising costs on all aspects of offshore wind farms, from wind turbines to steel and copper, developers are signaling that they need higher revenues to make the projects financially viable. So far, governments have largely declined to change their terms, so a kind of developers’ strike has set in that is likely to delay projects or even lead to some being scrapped. The costs of electric power from offshore wind, which have declined sharply over the last two decades, also seem likely to rise. All that said, the auction was not as much of a disaster as portrayed by critics. Deepa Venkateswaran, an analyst at Bernstein, a research firm, said eligibility criteria and other considerations had made very few developers likely to participate in this round anyway. The British auction did attract bidders for onshore wind and solar schemes. BEHIND THE STORY: A SYSTEM TO SPUR INVESTMENT MAY NEED AN UPDATE. Britain supports renewable energy through a subsidy system known as “contracts for difference.” In essence, developers are guaranteed to be paid a certain price — an estimated 69 pounds per megawatt-hour in this case — for the power that their projects generate. These guarantees are intended to give companies certainty and encourage financial institutions to put up the large sums, ranging well into billions of dollars, required to build big wind farms. Until recently, the British system received good reviews and helped encourage large investments in renewable energy. More recently, though, with inflation soaring, the government’s efforts to use the scheme to drive down power prices for consumers have caused developers to back away. Vattenfall, a major developer, put a large planned project in the North Sea on hold this year, saying costs were rising as much as 40 percent. The problem is not limited to Europe. Offshore developers are also trying to renegotiate the terms of contracts to supply power in the United States. Some have been willing to scrap contracts and absorb the resulting financial penalties. Recently, Orsted, the largest offshore wind developer, announced a potential $2 billion write-down on planned projects in the United States and warned that it could cancel them. WHAT’S NEXT: ‘WE WILL WORK WITH INDUSTRY,’ THE U.K. GOVERNMENT SAYS. Analysts say this series of problems for a much promoted technology is likely to push governments to revise the terms of future auctions. In Britain, the failure “puts pressure on the U.K. government to change auction parameters” said Ms. Venkateswaran, the Bernstein analyst. The government does seem chastened by the tarnishing of an industry that is seen in Britain as a major success. “We will work with industry to make sure we retain our global leadership in this vital technology,” the British government said in a news release on Friday. The sputtering of government support systems may also encourage a shift away from subsidy regimes, some analysts say. Subscribe to The Times to read as many articles as you like. Stanley Reed has been writing from London for The Times since 2012 on energy, the environment and the Middle East. Before that he was London bureau chief for BusinessWeek magazine. More about Stanley Reed A version of this article appears in print on Sept. 9, 2023, Section B, Page 3 of the New York edition with the headline: An Offshore Wind Auction Fails to Attract Any Bidders. Order Reprints | Today’s Paper | Subscribe * Share full article * * * Read in app Advertisement SKIP ADVERTISEMENT SITE INDEX SITE INFORMATION NAVIGATION * © 2023 The New York Times Company * NYTCo * Contact Us * Accessibility * Work with us * Advertise * T Brand Studio * Your Ad Choices * Privacy Policy * Terms of Service * Terms of Sale * Site Map * Canada * International * Help * Subscriptions Your tracker settings We use cookies and similar methods to recognize visitors and remember their preferences. We also use them to measure ad campaign effectiveness, target ads and analyze site traffic. To learn more about these methods, including how to disable them, view our Cookie Policy. By clicking ‘accept,’ you consent to the processing of your data by us and third parties using the above methods. You can always change your tracker preferences by visiting our Cookie Policy. AcceptReject We've updated our termsWe encourage you to review our updated Terms of Sale, Terms of Service, and Privacy Policy. By continuing, you agree to the updated Terms listed here.Continue