The U.K. government has approved $1.27 billion for the next contracts for difference (Cfd) auction round, which is the biggest ever funding boost for its flagship renewables support scheme.
The budget for the sixth CfD allocation round signals large-scale government backing to drive further investment into the UK’s renewables sector and roll out more clean, secure and affordable energy.
The UK government has allocated a record $1 billion (£800 million) for offshore wind, which has been given a separate funding pot. This makes this the largest round yet, with four times more budget available to offshore wind than in the previous round.
Aside from offshore wind, the Allocation Round 6 (AR6) budget includes ($152 million) £120 million for established technologies such as onshore wind and solar, and $133 million (£105 million) for emerging technologies such as floating offshore wind and geothermal, including a ringfenced $12.7 million (£10 million) budget for tidal energy for a second consecutive year.
The CfD scheme gives renewable energy projects a guaranteed price for the electricity they generate, boosting investment in the UK – which has increased renewable electricity generation from 7% in 2010 to over 40% currently.
“This unprecedented renewables budget funding to the tune of over £1 billion will keep the UK at the cutting edge of the industry. This announcement will ensure we offer certainty to developers and continue to attract investment in the UK.
“I am excited to see the opportunities that will open for our world-class renewable industries, reducing emissions and delivering reliable clean energy for the British people,” said Andrew Bowie, UK’s Minister for Nuclear and Renewables.
“We welcome this budget increase, as it recogniues that global economic conditions have changed, and it will secure a significant amount of new offshore wind capacity and private investment, as well as creating thousands of new jobs,” added Dan McGrail, Chief Executive of RenewableUK.