ScottishPower Renewables, Iberdrola’s partner in the UK, is preparing the East Anglia One North and East Anglia Two offshore wind projects for the next auction round for Contracts for Difference (CfD). According to recent project updates published by Iberdrola, the plans were included in their financial results for the last year. Iberdrola states that there has been progress in vital engineering and design work for the two projects, and while they were not available in the UK’s fifth CfD Allocation Round, plans are due to include both projects in the next round.

The two offshore wind projects represent part of the £6.5 billion East Anglia Hub project, including East Anglia Three, which is under development and due to start generating electricity in 2026. The 1.4GW East Anglia Three secured Contract for Difference in 2022.

The 800MW East Anglia One North and the 900 MW East Anglia Two projects, intended to be constructed a little over 30 km off the Suffolk coastline, secured development consent in March 2022. The fifth CfD round ended in September last year and saw the UK government award 3.7GW of renewable energy projects, but none of these awarded were for offshore wind projects as offshore wind developers placed no bids.

Round 5 CfD included two auction sections, one for established renewable energy technologies, like fixed-bottom offshore wind and a secondary tier for less established technologies, like floating offshore wind. At the end of last year, the government confirmed that it would increase the maximum strike price for offshore wind projects in the upcoming CfD auction by 66% for fixed-bottom structures and 52% for floating wind.

In the next round, offshore wind will be granted a separate funding pot in recognition of the high number of projects willing to participate, according to the government. The UK Government will likely confirm additional auction plans before the next allocation round this year.

In the UK, Iberdrola, via ScottishPower Renewables, is responsible for the East Anglia One offshore wind farm and the 389MW West of Duddon Sand, a joint venture with Orsted. The business is also developing three additional projects, with a total capacity of 7GW in Scotland, after securing development rights in the 2022 ScotWind seabed lease auction.

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