Government to support 12GW renewable energy capacity: The government has laid out plans for the upcoming round of support for renewable energy projects covered by its flagship Contracts for Difference (CfD) scheme.
It looks to double the volume of renewable energy from the 5.8GW accomplished in the previous round to up to 12GW when the 4th round commence in late 2021.
The government also proposes to expand the amount of technologies backed, using onshore and offshore wind, tidal, solar & floating offshore wind projects all qualified to bid.
Offshore wind projects will compete in their own ‘pot’ in the coming auction as opposed to against other technologies as they have in former rounds, given their long term capability to support the UK’s 2050 net zero goal.
The fourth round will, as a result, see 3 ‘pots’ for renewable technologies:
Pot 1: Established technologies, containing onshore wind & solar
Pot 2: Less-established technologies, containing floating offshore wind, advanced conversion technologies & tidal stream
Pot 3: Offshore wind
Previous coal-burning power stations that have been transformed to biomass generation will not be included in future CfD rounds.
The CfD scheme advocates investment in renewable energy by supplying projects with a stable income, at the same time protecting consumers from paying higher costs when electricity prices are high.
Energy Minister Kwasi Kwarteng announced: “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.”
Coming after the first consultation on the fourth CfD round, the government has reported a second consultation is being put in motion on new proposals for the supply chain plan.
The proposals are outlined to increase the clarity, ambition & measurability of commitments made by renewable energy developers when they bid for contract in the CfD scheme and to recommend new measures if they fail to produce on those commitments.
Government to support 12GW renewable energy capacity