East Anglia: Key things to watch in renewable energy 2024

From ballooning costs which saw work halted on one of Norfolk’s biggest offshore wind farms, to the government’s energy auction failing to attract a single industry bidder, there was much hand wringing over the future of the region’s energy coast.

But with a slate of project updates, new players entering the field, and company progressions on the horizon, those in the sector predict 2024 will be a pivotal year.

Here’s the biggest things to look out for over the next 12 months.

NORFOLK OFFSHORE WIND ZONE

At the end of 2023 it was announced that Vattenfall had sold the rights to develop three wind farms in Norfolk to German firm RWE for nearly £1bn.

Vattenfall confirmed the sale after stopping work on one of the three sites in July last year due to massive cost inflation.

Vattenfall sold its Norfolk Boreas site (Image: Rasmus Kortegaard Photography)

It said it believes the agreement with RWE was the best way forward both for the company and for the Norfolk projects, securing the future of the Norfolk Offshore Wind Zone.

RWE said it would resume the development of the Norfolk Boreas project, with all three Norfolk projects expected to be commissioned in this decade.

CHANGES AT EASTWIND

EastWind, the East of England’s offshore wind cluster, announced its formal conception as a company limited by guarantee earlier this week in a move that will take its work to the next level.

Left to right: EastWind vice chair Denise Hone, Andrew Harston of Associated British Ports and Alexis Brackpool, newly appointed project manager for EastWind (Image: East Wind)

Founded in 2021, the EastWind Offshore Wind Cluster has united regional developers, educators and industry leaders, becoming the voice of the offshore wind sector in the East of England and attracting more than 150 members from across the sector supply chain.

Establishing itself as its own legal entity with a dedicated board of directors and robust governance structure, the cluster is set to redefine its role, offering an influential industry presence, a unified voice, collaborative marketing initiatives and a cohesive approach to skills development.

SIZEWELL C CONSTRUCTION 

In April the first diggers will arrive on site to finally begin work on the Suffolk nuclear plant.

The project on the Suffolk coast, which will generate enough low-carbon electricity for around 6 million homes, was given the go-ahead by the chancellor in November 2022, but had been held up by appeals by anti-nuclear campaigners.

Construction will begin at Sizewell C (Image: Newsquest)

But last month the government signed a development consent order, meaning that preparation work on the site, such as building fencing and accommodation, can start.

At peak construction, around 2,600 workers – a third of the workforce on the site – are expected to come from the local area. 

For apprenticeships, the opportunity is significant: 1,500 apprenticeship places on offer during the course of the construction phase.

PRICE OF ENERGY

Following 2023’s failed Contracts for Difference auction - which saw offshore wind developers boycott bidding due to the price being set too low -  the government announced it would raise the Administrative Strike Prices (ASPs) for a number of renewable technologies in the next round.

This adjustment, a 66pc increase for offshore wind projects, from £44/MWh to £73/MWh, came as a relief to the sector.

The move should allow for a more competitive auction which – depending on the overall budget – will see more eligible renewable projects compete. 

The separate funding pot should also further incentivise investment for offshore wind, helping to overcome many of the cost challenges faced by developers over the past couple of years.