The results from the latest Contracts for Difference (CfD) auction will see a record-breaking 131 renewable energy projects receive funding, compared to 92 in the previous round.
Once completed, the new projects will power the equivalent of 11 million British homes. This CfD round has been noted as ‘the biggest round ever’ for the UK, with the new Labour government boosting the CfD funding pot to a record £1.5bn in July, to help it achieve its 2030 clean power goal.
Offshore wind power receives large chunk of funding
Offshore wind received significant attention, with nine contracts awarded, including the largest and second-largest wind farms in Europe, Hornsea 3 and Hornsea 4. Additionally, the world’s largest floating offshore wind project, Green Volt, off the Scottish coast, was also awarded a contract. This project will include up to 35 floating wind turbines, providing up to 560 MW of capacity.
The combined capacity of new offshore wind projects in this auction is approximately 5GW, with prices secured well below the reserve price, making offshore wind a cost-effective option for the UK’s energy security.
Onshore wind power is back on the menu
After its previous removal from the UK energy agenda by the Conservative government, onshore wind is now back on the cards for the CfD. Contracts were awarded 1GW of new capacity, making itself a key component of the UK’s clean energy strategy. The government also aims to double its capacity by 2030.
Solar and tidal power
Over 3GW of solar power projects were successful in this auction, marking a significant increase in the UK’s solar capacity. A total of 115 solar and onshore wind projects received funding, tying back into Keir Starmer’s idea of creating a “solar revolution.”
Six new tidal power projects were also awarded contracts. With these projects, around 50% of the world’s operational tidal stream capacity will be located in UK waters.
Projects funded by the latest CfD round:
- The largest offshore windfarm project in Europe – the Hornsea 3 project off the Yorkshire coast
- Floating offshore wind project, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity
- 6 new tidal projects
- A combined 115 solar and onshore wind projects
The government has said that the funding round is expected to create green jobs across the UK, particularly in industrial regions and rural communities, driving economic growth. The projects are also anticipated to help lower energy bills by reducing reliance on imported fossil fuels.
Of the latest round, Energy Secretary Ed Miliband said, “We inherited a broken energy policy, including last year’s disastrous auction round which gave us no successful offshore wind projects.”
“Today we have now achieved a record-setting round for enough renewable power for 11 million homes, essential to give energy security to families across the country.”
