Offshore Wind Contracts

Debate between Ian Liddell-Grainger and Graham Stuart

Tuesday 12th September 2023 Commons Chamber

[Graham Stuart]

I do not quite follow the second part of the hon. Gentleman’s question, but I am happy to write to him on that topic.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

West Somerset, as the Minister knows, is ideal for offshore wind. I am interested to know why people did not bid in this round. What were their reasons? What can the Government do to learn the lessons of this round so that people like my hon. Friend the Member for North Devon (Selaine Saxby) can make sure that people are bidding in the next round?

[Graham Stuart]

We typically set out the key auction parameters in November, and those include the ceiling of what we will pay for particular technologies. We do that based on our analysis of supply chain costs, and we also commission external analysis. The most important data of all comes from individual auction rounds, and it is on that basis that we set the price parameters. The industry warned us, as it does every year, that it wants us to pay more. We always have to make a judgment call between making sure that we minimise—[Interruption.] It would be so much easier to give my answer, Mr Speaker, if the right hon. Member for Doncaster North (Edward Miliband) would stop—