The UK’s flagship auction process (the Contracts for Difference (CfD) scheme) will get another go next year, and this time including all types of renewable energy technologies – even onshore wind and solar, which hasn’t happened since 2015. The British minister, Boris Johnson, plans to double the country’s renewable energy capacity through the upcoming auction as part of his “Green Industrial Revolution” program.
Energy Minister Kwasi Kwarteng said:
The UK is a world leader in clean energy, with over a third of our electricity now coming from renewables. That huge achievement is thanks to the government’s Contracts for Difference scheme. The new plans set out today build on the prime minister’s Ten Point Plan and put us firmly on the path towards building a new, green industrial revolution.
A capacity great enough to maintain 20 million electric cars a year (12 gigawatts) will be up for bidding. The contracts to be awarded will give renewable energy project developers a guaranteed price per unit of electricity generation for 15 years. The target is almost double what was obtained in the 2019 auction (5.8 gigawatts).
CEO of Lobby Group Energy UK, Emma Pinchbeck, said:
We have long sought the next contract for difference settlement to provide the lowest possible carbon power, so we strongly believe that capacity will double. We welcome you next year.
The event will be split into three separate auctions to give each category; it’s the best chance. They’re calling the groupings “pots.” One pot will be for offshore wind power projects alone, another onshore wind and solar projects, and the third more rare technologies such as tidal and floating offshore wind projects. In previous auctions, technologies had to compete against each other in one big pot.
The auction will not include biomass generation projects this time.
Offshore wind is one of the main topics in Johnson’s “10-Point Plan” for the Green Industrial Revolution. He hopes to increase the country’s offshore wind capacity four-fold to 40 gigawatts by 2030. That’s enough energy to power all homes in the UK, stimulate £20 billion of private investment, and support up to 60,000 jobs.
CEO of industry group Renewable UK, Hugh McNeal, said:
The offshore wind industry is investing in developing a vibrant and competitive UK supply chain.
The CfD scheme protects consumers from paying increased costs when electricity prices are high. For the developers, it provides projects with a stable income, thus encouraging them to invest in renewable projects.
