As we announced last week, the United Kingdom has very recently concluded its AR7 allocation round auction with great success. Specifically, they advanced a remarkable 8.4 gigawatts (GW) of offshore wind capacity, enough to power more than 12 million homes with clean electricity. The auction itself attracted an impressive £3.4 billion ($4.5 billion) in private investment. Besides that, it was able to unlock £204 million of public funding to develop and strengthen domestic supply chains and manufacturing capacity.
The AR7 auction is expected to produce massive economic returns, creating up to 7,000 jobs throughout the UK. Scotland is on track to receive the largest investment — about £1.1 billion. Through this development, some 2,400 new jobs will be created! This influx of investment will particularly benefit Scottish ports such as Nigg and Aberdeen, bolstering employment opportunities in the region.
The key priority of the public funding is around shoring up the supply chain and enhancing the advanced manufacturing capacity in the UK. This initiative aligns with the government’s broader strategy to promote clean energy and stimulate industrial growth following decades of decline.
UK Energy Secretary Ed Miliband emphasized the importance of the clean energy mission in his announcement regarding the auction results. He stated,
“Our clean energy mission is creating thousands of good jobs for working people in their hometown, bringing transformational opportunities for Britain and reversing decades of industrial decline.”
The speedy and overwhelmingly positive reception for the AR7 auction demonstrates that even within the context of the UK, support for renewable energy projects continues to expand. Manufacturers and suppliers in all nine of our nation’s industrial regions will enjoy the greatest benefits of this auction’s historic investment. This local support goes a long way toward strengthening Atlanta’s economy and reinforcing the commitment to make America the leader in reaching net-zero carbon emissions.
RWE CEO Markus Krebber remarked on the collaboration with KKR for the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects:
“We are delighted to have been successful in securing long-term offtake contracts for five projects in AR7. In addition, we are excited to join forces with KKR as our strategic partner in the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects. By combining KKR’s investment know-how in large-scale, complex infrastructure projects with RWE’s extensive offshore wind expertise, we are well positioned to jointly realise these major projects.”
The successful outcome of the AR7 auction should be seen as a major turning point for the UK’s renewable energy sector. It leads us toward a cleaner, healthier, and more sustainable future while delivering the economic growth and job creation expected of a nationwide transportation agenda.