Clean energy to power over seven million homes by 2025 at record low prices
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Twelve new renewable energy projects will be powering over seven
million homes at record low prices thanks to the latest round of
the government’s flagship Contracts for Difference scheme. The new
projects will provide around 6GW of capacity – 2.4GW more than the
last round. For the first time renewables are expected to come
online below market prices and without...Request free trial
Twelve new renewable energy projects will be powering over seven million homes at record low prices thanks to the latest round of the government’s flagship Contracts for Difference scheme. The new projects will provide around 6GW of capacity – 2.4GW more than the last round. For the first time renewables are expected to come online below market prices and without additional subsidy on bills, meaning a better deal for consumers. The costs of offshore wind are now around 30% lower than the second auction held in 2017, with projects now being delivered for as low as £39.65/MWh. The new projects and lower prices are another step toward decarbonising our energy system as we work toward net zero emissions by 2050, creating jobs and economic opportunities across the UK. According to research by RenewableUK, the new projects could see 8,000 jobs created. Prime Minister Boris Johnson said:
Energy and Clean Growth Minister Kwasi Kwarteng said:
The Contracts for Difference (CfD) scheme is the government’s primary method of supporting low-carbon electricity. It encourages investment in renewables by providing projects with a stable income while protecting consumers from paying increased support costs when electricity prices are high. Renewables projects across the UK have been awarded CfDs – from Birmingham to Orkney. Successful technology types include:
Today’s results are the latest stage of the government’s support for renewable energy. In March 2019 we signed a ground-breaking £250 million sector deal with the offshore wind industry which committed us to maximising opportunities and sourcing up to a third of electricity from offshore wind by 2030. The UK has the largest installed capacity of offshore wind in the world, with around 8GW installed at the end of 2018. This is expected to rise to 10GW by next year, and even further as more projects start contributing power to the grid into the 2020s. In June the government committed to reaching net zero emissions by 2050 and ending the UK’s contribution to global warming altogether. The UK has already made a strong start in decarbonising its energy system, with renewables generating a record 33% of the country’s electricity last year. It has been estimated that the low carbon economy in the UK could grow four times faster than rest of the economy out to 2030 and could deliver between £60 billion and £170 billion in exports by 2030. Today’s results demonstrate the potential of renewables to create such ‘green-collar’ jobs. Notes to Editors: Previous rounds of the Contracts for Difference scheme have seen around 10GW of new renewable power projects awarded contracts in total, with the potential to provide enough clean electricity for over half a million homes each year. How Contracts for Difference works:
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