14/12/2022 | Supply chain

Next auctions for clean power have potential to widen benefits of renewables

14 December 2022 - RenewableUK press release


The Government has started to unveil the details of next year’s auction for Contracts for Difference, setting out information on the pot structure, delivery years and administrative strike prices for the fifth CfD Allocation Round, as well as the requirements which bidders will have to satisfy.


Ministers have also published a consultation on Allocation Round 6 - which is due to open in 2024 - and future rounds beyond this. This includes the possibility of adapting the scheme to consider other factors beyond price such as sustainability and securing supply chain growth.


RenewableUK's CEO Dan McGrail said:


“It’s vital for billpayers who've been hit hard by massive increases in the price of gas that we maximise investment in renewable technologies which offer highly competitive prices. Wind farms are the lowest cost way to generate electricity and can be built rapidly, enabling the UK to move away from expensive fossil fuels faster than other technologies. 


"The Government and the industry are keen to ensure that billpayers get the maximum benefit from new renewable energy projects. However, we can't ignore rising commodity and labour costs across the world which are increasing the cost of building all energy infrastructure. To avoid the risk of the UK losing out on potential investment in the clean energy supply chain, Ministers need to take account of these costs in the final budget they set for the upcoming clean power auctions in March.
 
“It’s great to see the Government consulting on how CfD auctions might be reformed to support wider goals like environmental sustainability and supply chain growth. We have to start this process as soon as possible - that means setting budgets and prices for next year’s CfD auction which enable supply chain investment by taking full account of the soaring costs which developers are facing.”


 


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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 400 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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