In a historic achievement for the UK's renewable energy sector, Orsted and Iberdrola have secured major victories in the government’s latest renewables auction, which saw a record 131 clean energy projects awarded contracts. This auction, the most successful to date, marks a significant step towards the UK’s goal of decarbonizing its electricity sector by 2030, with the potential to power 11 million homes.

Orsted’s Hornsea 4 project, set to become Europe’s largest offshore wind farm, secured the largest contract by capacity. Meanwhile, Iberdrola clinched contracts for its East Anglia Two and East Anglia Three offshore wind projects, further solidifying its presence in the UK market.

The 131 projects this year is the biggest auction to date – exceeding the 92 projects delivered in the last auction round.  
This includes:  

• The largest offshore windfarm project in Europe - the Hornsea 3 project off the Yorkshire coast
  
  
• The largest floating offshore wind project in the world to reach market, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity
  
  
• 6 new tidal projects, building on the UK’s world leading position, with just under half of the world’s operational tidal stream capacity being situated in UK waters
  
  
• A combined 115 solar and onshore wind projects, which is more than the total number of projects delivered in the last auction round  

Revitalization after disappointing 2023 auction round

This auction represents a stark turnaround from the disappointing results of 2023, where no offshore wind projects were agreed upon. The government’s swift decision to increase funding by 50% and its commitment to driving the UK’s clean energy mission have been pivotal in revitalizing the offshore wind sector.

Commenting on the auction's success, Energy Secretary Ed Miliband stated, "Today we have now achieved a record-setting round for enough renewable power for 11 million homes, essential to give energy security to families across the country. It is another significant step forward in our mission for clean power by 2030 – bringing Britain energy independence and lower bills for good."

Energy Minister Michael Shanks also emphasized the auction’s impact, saying, "Securing new wind turbines, solar panels and cutting-edge technologies such as tidal will boost growth, catalyse investment and support good jobs across Great Britain. We’ve done this while ensuring value for money for billpayers, delivering the biggest auction round to date at competitive prices, helping turbocharge our mission for energy independence and clean power by 2030."

On the other hand, one of the most important voices in the sector, RenewableUK CEO Dan McGrail, stated that "today's auction success sends a clear signal that the UK is back in the global race for clean energy investment." He emphasized that the "wide range of projects across all technologies" is crucial for building a clean and affordable energy system while reducing reliance on costly fossil fuels. Following last year's offshore wind auction failure, securing contracts for nine major offshore wind projects "will boost investor confidence," McGrail noted. He highlighted that with intense global competition, upcoming auctions will be critical for the UK, and achieving the government's "world-leading clean energy mission for 2030" will require significant progress. The industry is prepared to work with the government to ensure an increase in new renewables to meet this goal.

These wins not only underline Orsted and Iberdrola’s leadership in the renewable energy space but also contribute to the broader UK strategy of enhancing energy independence and economic growth through green initiatives. As the UK accelerates its transition to clean power, these projects will play a critical role in reducing energy bills and securing the nation’s energy future.