Britain Launches £285m A Year Renewables Auction Round

The UK on Monday opened requests for its largest renewable energy auction to date, offering £ 285 million ($ 376.97 million) in funding to help meet its climate targets, the government said.

“By creating more renewable energy in the UK, we can ensure greater energy independence by moving away from volatile fossil fuel prices in the world, all while lowering the cost of new energy,” Business and Energy Minister Kwasi Quarteng said in a statement.

Under the UK Contracts for Differences (CfD) program, eligible projects are guaranteed a minimum price at which they can sell electricity. CfD contracts are offered to power generation companies at auction.

The program, launched in 2014, is the government’s primary method of encouraging investment in low-carbon production in the UK, and the latest, fourth round is designed to ensure 12 gigawatts (GW) of new capacity across a wider range of technologies.

At £ 200 million a year, the largest funding is allocated to maritime wind, with the resulting capacity alone being enough to operate about 8 million homes, the government said.

Another £ 75 million is set aside for developing technologies, with £ 24 million set for floating offshore wind projects and £ 20 million for tidal currents, he noted.

Based technologies, such as solar and terrestrial wind, can receive £ 10 million in funding, she added.

Applications close on January 14, 2022, with the final results of the auction expected to be announced in spring-summer 2022, she added.

The latest round is expected to help the UK reach a target of 40 GW of installed renewable energy capacity by 2030, compared to 10.4 GW today, the government added.

($ 1 = £ 0.7560)

(Reported by Nora Bolly in Oslo, edited by Louise Havens)

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