SSE has urged government to lift the 6GW contracts for difference (CfD) cap on offshore wind, arguing it is inappropriate in the face of the government’s ambition to reach net zero emissions by 2050, enshrined in law last month.
In a letter to Beis minister Chris Skidmore, SSE chief executive Alistair Phillips-Davies said the “scale of the challenge” in decarbonising the economy should not be underestimated.
He said government must scale up its ambition.
“Offshore wind will play a crucial role in providing affordable low carbon power and the Committee on Climate Change (CCC) has suggested 75GW of offshore generation may be required by 2050, compared to 8GW today and 30GW targeted by the Government’s sector deal for 2030. Increasing offshore capacity in line with the CCC advice is challenging but achievable.
“Increasing the 6GW cap provides Government with an opportunity to show that it is serious about net zero and positioning the UK as a world leader in both the offshore wind sector and the fight against climate change. It can do this in a way which is quick, simple and cost neutral for consumers.”
SSE said upping the 6GW cap, set before the Committee on Climate Change’s Net Zero report, would be a “rational and proportionate step” for the government and next prime minister to take, if it is “serious” about decarbonising by 2050.