03/08/2023 | Supply chain

Industry welcomes budget uplift in auction for vital new clean energy projects

03 August 2023 - RenewableUK press release


Responding to today’s announcement by the Secretary of State for Energy Security and Net Zero Grant Shapps of an increase in the budget for this year’s auction for contracts to generate clean power (Contracts for Difference), RenewableUK's Executive Director of Policy Ana Musat said: 


"Today’s announcement by the Government of a budget uplift of £22m for Contracts for Difference in this summer's auction to bring forward vital new clean energy projects is welcome, particularly given the industry's concerns that the budget published initially - which was £80m lower than last year - would limit the number of viable renewable energy projects able to secure a contract to generate clean power. 


"At a time when the UK is investing heavily in energy security and looking to create additional economic opportunities by growing the renewables supply chain, it's essential that we have a consistent pipeline of projects. An increased CfD budget can help, but the most important step Government could take to encourage investment in this growing industry would be to ensure that we have sustainable pricing in future auctions, which take into account the difficult economic circumstances faced by the sector. Setting artificially low prices will deter investment, reduce our pipeline and limit the UK’s ability to stay ahead in the global race for renewable energy capital, skills and supply chain investment".


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Notes


RenewableUK’s members are building our future energy system, powered by clean electricity. We bring them together to deliver that future faster; a future which is better for industry, billpayers, and the environment. We support over 470 member companies to ensure increasing amounts of renewable electricity are deployed across the UK and to access export markets all over the world. Our members are business leaders, technology innovators, and expert thinkers from right across industry.


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