Combined Heat & Power

Demand Side Services

Energy Efficiency

Heat Networks

Contracts for Difference | Government confirms up to £557 million for new renewable energy projects

11 October 2017

Energy Minister Richard Harrington confirmed 11 October 2017 that up to £557 million will be made available for less established renewable electricity projects as part of the government’s Clean Growth Strategy, to drive economic growth and clean up the energy system.

Since 1990 the UK’s emissions are down by more than a third while the economy has grown by two-thirds. Low carbon generation provided more than half (52%) our electricity this summer, according to National Grid, while PwC analysis shows the UK decarbonising faster than any other G20 nation.

The Clean Growth Strategy, which will be published this week, will build on this success and ensure Britain remains a global leader in the move towards a low carbon economy. It will ensure the whole country can benefit from new technologies, jobs and businesses that are good for consumers, the environment and the economy.

As part of the strategy, developers will compete for up to £557 million of funding in Contracts for Difference auctions which drive down energy costs for consumers and increase business confidence. The latest auction saw the cost of new offshore wind fall by 50% compared to the first auction held in 2015 and resulted in over 3GW of new generation which could power 3.6 million homes.

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 Clean Growth Strategy will look across the whole of the economy and the country. It includes ambitious proposals on housing, business, transport and the environment, as well as the power sector. It will also show how actions taken to tackle emissions have helped to reduce energy bills for households.

The next Contracts for Difference auction is planned for spring 2019.

For more information, click here

Additionally, BEIS have announced remote islands of Scotland are to be eligible to apply for support for wind power projects

The UK government intends to allow wind projects on the remote islands of Scotland to compete in the next competitive auction for less established renewable technologies (Contracts for Difference) to be held in spring 2019, it was announced today. The UK government has also announced that up to £557 million of support will be available for future Contracts for Difference auctions.

Scottish Secretary David Mundell said:

Wind projects on the remote islands of Scotland have the potential to generate substantial amounts of electricity for the whole of the UK and I am delighted they will have the opportunity to compete in the next round of Contracts for Difference. This UK government investment is vital in realising the potential of less established renewable technologies, as well as providing Scottish jobs in the projects supported.

Clean Growth is at the heart of the Industrial Strategy, and the UK government is determined to unlock opportunities across the UK, while cutting carbon emissions as the world moves to towards a low carbon future.

ADE Newsletter