Highlights

40 GW capacity target confirmed for 2030

Offshore covered 10% of demand in 2019

Project pipeline big enough, but grid challenge

London Every home in the UK -- Europe's third-largest economy -- will be powered by electricity from offshore wind farms within a decade, UK Prime Minister Boris Johnson said in a speech to the Conservative Party conference Oct. 6.

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Johnson said the government would raise its target for offshore wind capacity by 2030 from 30 GW to 40 GW, providing funding of GBP160 million ($207 million) for offshore wind ports like Teesside and Humberside.

The announcement will fuel debate on the viability of the government's targets and the long-term implications for pricing. The UK government is due to publish an energy white paper alongside a heat and buildings strategy this autumn.

The following are key facts around energy policy in the UK.

Offshore wind has become more competitive in the UK power sector with the cost of installation falling in successive auctions.

Platts Analytics forecasts UK demand to recover from COVID-19 losses by 2022, supported by electrification of transport. Forecasts for total UK demand in 2030 range from 300 TWh up to 322 TWh.

The 40 GW target is not new the government had confirmed the target in December 2019 but it is hugely ambitious.

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FACTBOX: Every UK home to be powered by offshore wind by 2030: PM - S&P Global