The British government announced that it will provide funding of up to $732mn for the next clean electricity auctions for lesser-established renewables such as offshore wind and remote island wind.
This is set to be a significant boost to wind energy initiatives in the UK, aiding its overall march towards renewability.
The forthcoming contracts for difference (CfD) allocation round for prominent renewable energy technologies will open by May 2019, according to the government. This will enable offshore wind, and remote island wind providers to bid for contracts that can possibly power up to four million homes, says the government. The government also announced its intentions of holding a subsequent allocation round in 2021, and auctions every two years thereafter. These will deliver between one to three GW of offshore wind each year in the next decade.
The CfD scheme guarantees a minimum price to qualifying projects – at which they can sell electricity and renewable power generators bid for CfD contracts in auction rounds. This encourages long-term investment and brings about reduced energy costs.
According to Benj Sykes, co-chair of Offshore Wind Industry Council, the proposed ambition to deliver 30GW by 2030, sufficient to meet a third of the country’s electricity needs, could increase power exports five fold, create thousands of skilled jobs and reduce electricity system costs.
“Today’s announcement is a vote of confidence in our industry, and will directly enable more investment in the UK.” he added.