The fourth Contracts for Difference auction for renewable energy in the UK has opened for applications today.
Energy Department BEIS has put £285m up for grabs to support projects across three pots.
The lion’s share, £200m, is available for offshore wind, £75m for emerging technologies, such as remote island wind, tidal stream and floating offshore wind, and £10m for established technologies, such as solar and onshore wind.
Within emerging technologies, £24m a year has been ringfenced for floating offshore wind projects and £20m initially set aside for tidal stream projects.
Onshore wind and solar are meanwhile competing in an allocation round for the first time since 2015, and the government is seeking significant capacity from these technologies which will help it achieve the required levels of deployment in line with meeting climate change targets.
Officials pointed out there has also been a strengthening of the supply chain plan process, so the CfD’s fourth round can support the “effective development of open and competitive supply chains and promote innovation and skills in the low-carbon electricity generation sector”.
In total, the UK is hoping to secure 12GW of new capacity through the round, which is the largest to date.
Energy Secretary Kwasi Kwarteng (pictured) said: “Our biggest ever renewables auction opening today will solidify the UK’s role as a world-leader in renewable electricity, while backing new, future-proof industries across the country to create new jobs.
“By generating more renewable energy in the UK, we can ensure greater energy independence by moving away from volatile global fossil fuel prices, all while driving down the cost of new energy.”
Energy Minister Greg Hands said the Contracts for Difference scheme is proof that green and growth go hand-in-hand as it continues to be a key driver behind a world-leading renewable energy sector, while RenewableUK CEO Dan McGrail added the auction is a “landmark” one.
“More than 16GW of wind could be ready to compete and over 23GW of renewables overall. We could see investment of over £20 billion in this round, creating thousands of jobs and cutting costs for energy consumers,” he said.