UK Government’s flagship renewables scheme secures 95 new projects
UK Governments announces new projects spanning onshore wind, solar, tidal, and ground-breaking geothermal initiatives to deliver 3.7GW of clean energy —bolstering the economy, enhancing energy security, and advancing the nation's path to net zero emissions.
UK Government announces new projects spanning onshore wind, solar, tidal, and ground-breaking geothermal initiatives to deliver 3.7GW of clean energy —bolstering the economy, enhancing energy security, and advancing the nation's path to net zero emissions.
The Department for Energy Security and Net Zero has announced a record number of clean energy projects which have recieved from funding from the government’s flagship renewables scheme helping the UK grow the economy and strengthen energy security.
Reports from the first annual Contracts for Difference round, a total of 95 clean energy projects have been successful with their bids – up from 93 in the previous round.
The latest round had budget funding of £227 million and has secured enough to power the equivalent of 2 million homes.For the first time, geothermal projects – which use a natural heat source underground for generating power - have also been successful.
Launched in 2014, the Contracts for Difference scheme ensures projects receive a guaranteed price from the government for the electricity they will generate – giving companies certainty and confidence to invest in the UK.
Contracts are awarded through a series of competitive auctions, where the lowest price bids are successful, ensuring value for money for consumers.
This year’s auctions were split to ensure that new, less established energy sources do not have to compete for budget from long-established technologies – offering certainty for developers and keeping the UK at the cutting edge of the renewables industry.
Reports show, from 2010 to 2020, the UK has attracted almost half of all offshore wind investment in Europe, worth around £48 billion, making it the biggest market for capital spending commitments. On top of this, the £160 million Floating Offshore Wind Manufacturing Investment Scheme has also launched, offering investment into port infrastructure projects to enable the roll-out of floating offshore wind at scale.
DESNZ reveals to support the industry even further, the government reviews its approach ahead of each Contracts for Difference round and, with the introduction of annual auctions, project developers, including from the offshore wind industry, will now have more frequent opportunities to participate. This will also allow the government to respond more quickly to ensure the scheme continues to support the sector, maintain investment and continue its success.
Reports show it is also anticipated that around £100 billion of private investment will be forthcoming into the UK’s energy transition, which is expected to support up to 480,000 jobs by 2030, including 90,000 jobs in the offshore wind.
Find out more here.