The UK’s energy minister Richard Harrington has confirmed that up to £557m will be made available for electricity projects in a Contracts for Difference (CfD) auction in Spring 2019, with combined heat and power set to benefit.
“We’ve shown beyond doubt that renewable energy projects are an effective way to cut our emissions, while creating thousands of good jobs and attracting billions of pounds worth of investment,” Harrington said.
The funding is earmarked to build on the dramatic fall in technology costs seen in the latest round of auctions.
Less-established renewables set to be included are combined heat and power projects, offshore wind, biomass and energy-from-waste technologies, a government spokesman said.
Under the CfD scheme, qualifying projects are guaranteed a minimum price at which they can sell electricity and renewable power generators bid for CfD contracts in a round of auctions.
James Court, head of policy and external affairs at the Renewable Energy Association, said the government has not done enough to support other forms of cheap, clean energy like solar, onshore wind and biomass.
“The energy market is changing rapidly, with cheaper renewables, a more decentralised grid, smart meters and battery storage driving this revolution. Yet the UK will be left behind globally if the government don’t start supporting the industry and we will be left with a higher cost, higher carbon and out of date system that we will all end up paying for.”