Government makes £557m available for new renewables projects

Fresh set of Contracts for Difference auctions set to take place in 2019

The UK government has made up to £557 million available for “less established” renewables projects in a new set of Contracts for Difference (CfD) auctions planned for spring 2019.

The auctions will form part of the government’s Clean Growth Strategy, due to be published later this week. The strategy will outline how the UK moves towards a low carbon economy.

Energy Minister Richard Harrington said: “The government’s Clean Growth Strategy will set out how the whole of the UK can benefit from the global move to a low carbon economy.

“We’ve shown beyond doubt that renewable energy projects are an effective way to cut our emissions, while creating thousands of good jobs and attracting billions of pounds worth of investment.”

The latest CFD auction in September saw the cost of new offshore wind fall by 50% compared to 2015 and resulted in over 3GW of new generation which could power 3.6 million homes.

As Utility Week reported today, all but one of the contracts from last month’s auction have now been signed. 

The announcement of a new set of auctions was welcomed by Greenpeace, although the charity also urged the government to show still greater ambition.

John Sauven, executive director of Greenpeace UK, said: “The UK government took a bet on offshore wind and the industry delivered in style last month. The price set for electricity from offshore wind fell by 50% in just over two years. 

“The government is beginning to recognise this great deal, which they themselves helped to create, but more ambition is needed in order to reach its full potential. 

“Offshore wind has the ability to deliver thousands of jobs, attract billions in foreign investment and secure hundreds of international product and service contracts for British companies. This opportunity needs to be seized with both hands.”