Government unveils biggest ever renewable power auction round
The government today unveiled the biggest ever funding round for its flagship renewable energy scheme as it seeks to accelerate investment into green energy sources.
Under the fourth round of the Contract-for-Difference programme, £200m will be made available to support the development of offshore wind farms.
By the end of the decade, ministers have set a target of 40 gigawatts of wind power, four times the UK’s current installed capacity.
An extra £55m will be provided for new renewable technologies like tidal stream power, £24m of which will be ringfenced for the development of floating wind power.
The additional offshore wind capacity resulting from the latest funding round alone could power around 8m homes.
Under the scheme, qualifying projects are guaranteed a minimum price at which they can sell electricity. CfD contracts are offered to power generation companies at auction.
The scheme, launched in 2014, is the government’s primary method of encouraging investment in low-carbon generation in Britain.
Energy minister Anne-Marie Trevelyan said: “The Contracts for Difference scheme has helped the UK become a world leader in clean electricity generation and lowered prices for consumers.
“The new plans set out today deliver on the Prime Minister’s Ten Point Plan and will support the next generation of renewable electricity projects needed to power our homes and meet our world-leading climate change targets.”
Environmental Audit Committee chairman Philip Dunne MP said: “The UK has the geographic good fortune to be a renewables powerhouse. I am delighted to see that the potential of floating offshore wind and of tidal stream have finally been recognised as contributors to our future low carbon energy mix.
“This support for renewable energy will help Net Zero Britain, provide welcome demand signals to investors, and give industry the confidence it needs to secure the skills for the future.”