Renewable energy developers will compete for £290m worth
of contracts to support the growth of clean energy in
Britain, as the second Contracts for Difference auction
launches today.
Contracts for Difference are won through a competitive
process which drives down energy costs for consumers and
guarantees companies a certain price for the low-carbon
electricity they produce over 15 years. This gives them
the support and certainty they need to attract investment
and get projects off the ground.
The contracts made available today represent the first
part of the Government’s commitment to provide up to
£730m of annual support for renewable electricity
projects over the course of this parliament. They support
a key pillar of the Industrial Strategy by ensuring a
cleaner, more flexible energy supply.
Energy Minister said:
This auction underlines that Britain is open for
business to companies seeking to invest in low carbon
energy.
It is designed to deliver clean power to a million
homes, create jobs in the energy industry and provide
new supply chain opportunities, while reducing carbon
emissions by some 2.5 million tonnes per year.
The scheme is funded through a levy which forms a part of
energy bills and only projects that offer the best value
for money will win contracts. There is no cost on energy
bills until projects are up and running and generating
low-carbon energy.
The auction process starts today and will continue over
the coming months. It is expected to draw to a close by
the autumn, when the winners of the auction and final
clearing prices will be announced.
There has been £52bn of investment in renewable energy in
the UK since 2010, and for the first time ever exactly
half of the UK’s electricity came from low carbon sources
in the third quarter of 2016. The latest contracts will
help the UK build on this success.
Additional information
The UK is making significant progress in reducing harmful
carbon emissions. Provisional figures released last
week show the UK is halfway to meeting its 2050
target for greenhouse gases reduction, with emissions 42%
lower than in 1990.
View the documents
relating to the Contracts for Difference auction
National Grid is the Delivery Body for Contracts for
Difference, responsible for publishing
application/allocation guidelines and running the
Contracts for Difference allocation process.
Details about how
developers can apply
