Amid huge uncertainty over the future of UK offshore wind after one high-profile project was abandoned, new analysis has warned that an upcoming auction for new power deals could be a flop due to government “red tape” that would see as little as 2GW awarded, costing taxpayers billions.

An “arbitrary” limit on the number of farms that can be contracted and a failure by the government to consider predictions of gas prices remaining high are set to constrain the number of new projects awarded, found UK non-profit Energy and Climate Intelligence Unit (ECIU).