During the first allocation round of the government’s new contracts for difference (CfD) regime £315mn has been offered to 27 renewable energy projects.
CfDs are a “cornerstone” of the government’s reforms to the electricity market. They are intended to provide long-term certainty for low-carbon investors, with successful projects receiving 15-year subsidy contracts. The budget for CfDs operates within the Levy Control Framework, which caps the costs to consumers of levy-funded schemes.Read More
The outcome of the round confirmed that CfDs would be awarded to two offshore windfarms (totalling over 1.1GW of capacity), 15 onshore wind projects and five solar schemes. The projects cleared at significantly lower than the strike price established by government, meaning a lower cost to billpayers. DECC calculated that the process had delivered around 550MW more capacity than would have been achievable without competition, and said that it had provided “the best possible deal” for energy users.
Two energy from waste projects and three developments deploying advanced conversion technologies were also successful in the auction.