A new round of Contracts for Difference (CfD) will open in spring next year, the UK Government has confirmed.
contracts for difference
The Government has confirmed plans to double the amount of renewables getting support in the next round of contracts for clean energy technology.
Earlier this year the UK Government announced that onshore wind would be eligible to compete in the fourth Contracts for Difference (CfD) allocation round in 2021, a welcome outcome which will help ensure onshore developments will play a prominent role in the ‘green recovery.’
The newest wave of UK offshore wind farms could produce power so cheaply that they pay money back to consumers, researchers have said.
Government consultations are 10-a-penny but a current one on amendments to the Contracts for Difference scheme, which subsidises renewable energy developments, is a potential game-changer in key respects.
With the Government committing an apparent volte face on its renewable energy policy, the sector is now gearing up for what could be a whirlwind of activity when it comes to UK onshore wind developments.
The UK is now the seventh most attractive destination globally for investment in renewable energy, a new report said.
Developers will be able to bid for new sites to generate enough offshore wind to power more than six million homes as the Crown Estate launches a new round of leases.
Scottish energy minister Paul Wheelhouse has urged the UK Government to review its position on low cost renewables and recognise the challenges faced by remote island projects.
First Minister Nicola Sturgeon said yesterday that a “less reckless approach to Brexit” will help prevent Scotland's wind sector from being “compromised”.
The UK Government’s decision to end wind farm subsidies, including closure of the Renewables Obligation to nearly all new generating capacity, has raised concerns across the nation’s renewable energy sector. New renewable generating stations will now be expected to seek support under the Contract for Difference (CFD) mechanism but this is only open to emerging technologies such as offshore wind. The more established means of renewable power generation including onshore wind, solar and biomass are currently excluded from CFD support.
The UK Government today launched its second green power auction more than two years after the awards for the first round were announced.
A green energy body said today that onshore wind developers on remote Scottish islands would be “bitterly disappointed” that the UK Government has put off a decision on funding.
Renewable energy firms are at risk of “shutting up shop altogether” as a result of the early withdrawal of government subsidies, a Westminster committee has been told.