Trade bodies including Renewable UK, Scottish Renewables and the Solar Trade Association (STA) have welcomed the UK government announcement that onshore wind and solar will be included in new Pot 1 Contracts for Difference auctions.
RUK said the move to readmit onshore wind will lead to the lowest cost for consumers and businesses
Chief Executive Hugh McNeal said: “Backing cheap renewables is a clear example of the practical action to tackle climate change that the public is demanding, and this will speed up the transition to a net zero economy.
“As one of the UK’s cheapest power sources, new onshore wind projects will be a huge boost for jobs and investment in local economies across the UK.”
Scottish Renewables said the decision will give the onshore industry the confidence needed to start build out across the UK.
The trade body said the decision will also cement Scotland’s lead in onshore wind power, with around 58% of UK installed capacity (8.1GW out of 14.1GW), as well as 80% of its consented capacity (3.9GW of 4.9GW) in the country.
STA said a new CfD auction will enable greater deployment of the cleanest, cheapest forms of power generation today, cutting costs to consumers by £200m-£300m a year.
Scottish Renewables chief executive Claire Mack said: “This announcement is recognition that, as Scottish Renewables and others have said for many years, onshore wind and solar PV provide the cheapest way to tackle climate change while delivering economic benefits across the UK.
“Onshore wind employs 5,800 people in Scotland in highly-skilled, green jobs of the future. As we seek to meet our net-zero targets in the most cost effective way this technology has a key role to play.
“Scotland, with its enviable wind resource, is already home to the majority of the UK’s onshore wind power.
“We also have the majority of its consented capacity – that is, wind farms with planning permission, which are ready to build today.”
She said that access to the CfD mechanism does not mean new subsidies as the most competitive projects will be delivered at prices far below the wholesale cost of power.
Mack added: “Our robust planning system has already delivered gigawatts of onshore wind while giving communities a say on their construction.
“We have already called for communities to be involved earlier in the planning process so it’s good news that today’s announcement will strengthen that principle.”
“Today’s announcement will give our onshore wind sector the confidence it needs to begin to build out again across the UK, with the support of both the government and the public.
“We now look forward to working with other stakeholders, including communities, the Scottish government and our 32 local authorities, to make sure that onshore wind projects can deliver economic and environmental benefits across Scotland.”
STA chief executive Chris Hewett said: “Today’s announcement marks a major shift in the right direction for government policy on onshore renewables, and a welcome opportunity for the solar industry.
“New clean power auctions for Pot 1 technologies will accelerate the decarbonisation of the power sector and drive the shift towards net zero, bringing with it new jobs, cheaper electricity and opportunities closer to home for Britain’s highly experienced solar investors.”
“The government is backing a winner in solar, which is not only the UK’s most popular energy technology, but also highly cost-effective and one which offers unique opportunities to enhance local biodiversity and agriculture.”
STA said the decision will boost for jobs and growth in the renewable energy sector, and help ensure clean power is available to meet rising demand brought on by the rise of electric vehicles and the electrification of heat.
The organisation said there is currently a pipeline of more than 7GW of solar projects in development.