12GW of clean energy now open to UK bidders in CfD scheme

The fourth round of the UK government’s renewable energy support scheme opened for applications today (Monday, 13 December), with £285 million ($376.9 million) available a year to develop green energy projects.

Renewable energy projects across Great Britain can now bid for funding in the Contracts for Difference (CfD) scheme, which aims to secure 12GW of electricity capacity.

This round is open to a greater number of renewable energy technologies, with offshore wind, onshore wind, solar, tidal, and floating offshore wind projects, amongst others, eligible to bid.

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£200 million ($264.4 million) is available for offshore wind, £75 million ($99.1 million) for emerging technologies, such as remote island wind, tidal stream and floating offshore wind, and £10 million ($13.2 million) for established technologies, such as solar and onshore wind.

Energy and Climate Change 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 the world-leading renewable energy sector that is providing us with secure clean energy, creating jobs across the UK and opening investment and export opportunities.

“The previous 3 rounds have allowed us to push forward with the Green Industrial Revolution and this round will take us further and faster than ever before while continuing to drive down costs for consumers.”

According to the Department of Business Energy and Industrial Strategy (BEIS), the competitive design of the scheme has successfully increased renewables deployment while decreasing costs. The scheme’s design has led to a 65% price decrease per unit of offshore wind between the first allocation round (AR) in 2015 and the third in 2019.

Onshore wind and solar are competing in an allocation round for the first time since 2015, and the government is seeking significant capacity from these technologies to help meet climate targets.

RenewableUK CEO Dan McGrail said: “This is set to be a landmark auction securing the largest amount of new renewable energy capacity so far, as ministers have listened to our calls for the overall capacity cap to be lifted to reflect the enormous appetite among companies and investors in UK projects.”