UK Ups CfD Budget by GBP 25 Mln
The auctions, which will start on 29 January, will see only the most competitive projects receive contracts – helping to drive down the cost of renewables support.
Projects are set to compete for £325 million in support from new Contracts for Difference (CFD) – an increase of £25 million from the budget published in October. This year’s CFD budget is split between technology categories, enabling both established and less established technologies to access support.
The extra funding will increase the amount available for less established technologies, such as offshore wind and some biomass technologies, to £260 million. This will help to bring forward a diverse mix of low carbon energy supplies to help build a new generation of clean, reliable electricity supplies.
Energy and Climate Change Secretary Edward Davey said:
“We are transforming the UK’s energy sector, dealing with a legacy of underinvestment to build a new generation of clean, secure power supplies that reduce our reliance on volatile foreign markets.
“The high demand for contracts shows that we’re one of the top places for renewables investment, and the best place in the world for investing in offshore wind.
“Renewable electricity generation and investment have both more than doubled since 2010. We attracted a record breaking £10 billion worth of investment in 2014 and by making projects compete for support, we’re ensuring consumers get the best possible deal as well as a secure and clean power sector.”
Contracts for Difference, which provide long-term certainty for investors, are part of the Government’s reforms to the electricity markets, designed to drive investment in a new generation of clean, secure electricity supplies.