Set out CfD budgets three years ahead, parties urged

The next government should set minimum Contracts for Difference (CfD) budgets three years in advance and commission annual progress reports on grid connections from the National Infrastructure Commission (NIC), a renewables body has urged.

In its general election manifesto, one of a number published this week by energy industry bodies, the REA (Association for Renewable Energy and Clean Technology) calls for the establishment of a ‘rolling’ three-year-ahead timetable for new CfD allocation rounds (ARs).

These ARs should include minimum annual budgets to give investors greater predictability and separate auctions for replacing existing generation, which is becoming worn out, in order to ensure no loss of capacity from existing renewables sites.

The REA also calls for the NIC to be tasked with presenting to Parliament an annual progress report on efforts to speed up grid connection times that the government should be required to respond to.

The wish list also calls for the establishment of a Heat CfD mechanism to encourage the uptake of large-scale industrial heat decarbonisation projects.

And it urges a future government to expand the Boiler Upgrade Scheme to include energy efficiency measures and biomass, the introduction of a Geothermal Development Incentive by the end of 2025 and for reforms to enable the urgent delivery of Local Area Energy Planning for renewable heat projects.

REA says the next government must ensure too that the National Energy System Operator is fully up and running by the end of 2024 and that the strategic spatial energy plan, which the fledgling body is preparing, is produced next year.

In its manifesto, Solar Energy UK (SEUK) has called for the next government to swiftly approve three solar Nationally Significant Infrastructure Projects, currently awaiting a decision by energy security secretary Claire Coutinho, which would collectively contribute a total of more than 1GW of generation.

SEUK also urges an increase in the length of CfDs to align more closely with the operational lifetimes of renewable generation plant, thus reducing consumers’ exposure to volatile prices once they have to trade on the open market.

Renewable UK Cymru’s manifesto calls for the next government to encourage the prioritisation of a new transmission grid route between North and South Wales.

It also urges the bringing forward of strategic grid solutions for the Celtic Sea that go beyond the current development pipeline to fully realise the floating offshore wind potential in Welsh waters.

Amongst its recommendations, the Energy Networks Association’s manifesto calls for strengthening the criteria for entering and maintaining a place in the grid connection queue in order to ensure that unviable schemes can no longer block the way for credible clean energy projects.

The industry wish lists have been published ahead of next week when the main political parties are due to publish their general election manifestos.