Thursday 22 November 2018

Government allocates £60m for next renewables auction

Government allocates £60m for next renewables auction

The government has said around £60 million will be up for grabs during the next Contracts for Difference (CfD) renewables auction.

Energy and Clean Growth Minister Claire Perry confirmed the amount in response to questions in the House of Commons this week, adding BEIS is in the “final stages” of concluding a new offshore wind sector deal.

She said: “It will include both £60 million for the Contract for Difference auction next spring and a series of substantial commitments from the operators in the sectors to increase the UK content that will be spent.”

The government previously committed a total of £557 million for the next three CfD auctions - the next renewable capacity allocation round is planned to be opened by May 2019.

The draft budget notice has set a total capacity cap of 6GW for the so-called “less established” technologies for the delivery years 2023/24 and 2024/25.

The offshore wind CfD strike prices have been set at £56/MWh for 2023/24 and £53/MWh for 2024/25.

Remote island onshore wind has been set at £82/MWh for both delivery years.

A final budget notice will be issued no later than 10 working days prior to the commencement of the allocation round.

Ms Perry also said she believes solar power should not be provided to the grid for free.

The European Court of Justice recently suspended the UK's Capacity Market scheme, which means the government cannot hold any auctions or provide payments until it received clearance.

Written by

Bruna Pinhoni

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