The UK government on Thursday announced a budget of GBP 205 million (USD 247m/EUR 233m) for its latest renewables auction, scheduled to open to applications on March 30.
This is the fifth allocation round of contracts for difference (CfDs), which now move to being held every year.
The auction includes a GBP-170-million pot for established technologies, which for the first time encompasses offshore wind and remote island wind. The second pot will allocate GBP 35 million to emerging technologies such as geothermal and floating offshore wind, with GBP 10 million ring-fenced specifically for tidal stream technologies.
The previous auction backed about 11 GW of clean energy capacity. The support scheme has in particular been driving offshore wind growth in the UK, which aims to have 50 GW of turbines installed in its waters by 2030.
The 15-year CfDs to be awarded to developers will see them pay money back when wholesale electricity prices are higher than the price in the contract.
The results of the auction are expected to be announced in the late summer or early autumn.
“Today’s budget announcement, the move to annual auctions and continued investment in renewable energy will limit the impact of events like Putin’s illegal war in Ukraine and drive our overriding priority for the UK to have amongst the cheapest wholesale electricity prices in Europe,” stated Minister of State for Energy Security and Net Zero Graham Stuart.
(GBP 1 = USD 1.206/EUR 1.139)