The REA (Association for Renewable Energy and Clean Technology)
has welcomed today's announcement of record sums secured in the
latest round of government auctions for renewable energy. The
£1.5 billion auction will back 131 projects, including wind
farms, solar farms, and tidal energy projects. This comes after
the new government raised the funding to seven times the amount
provided last year.
Whilst it's encouraging to see this Government act quickly to
address the issues from the last auction round, which attracted
no new offshore wind projects, the REA is urging this
administration to be even more ambitious. The scope of the CfD
mechanism should be adapted so that a wider mix of technologies,
such as geothermal and existing assets coming to the end of their
generation contracts, are able to share in the success of the
CfD. This will ensure the UK develops a strong, varied energy mix
that is not reliant on a single technology. Also, if Labour is to
deliver on its promise to achieve Clean Power by 2030, deployment
dates between 2026 – 2029 highlight the limited window open to
contract new generation, requiring a clear and regular
timetable for future auctions.
Mark Sommerfeld, Deputy Director of Policy, REA
(Association for Renewable Energy and Clean Technology),
said:
“Today's CfD Auction results underscore the critical
importance of investing in homegrown renewable energy. By
securing record levels of solar and offshore wind at competitive
strike prices, the UK is advancing towards a secure,
decarbonised, and affordable energy system. This progress will
deliver real returns, creating jobs and shielding consumers from
the volatility of international fossil fuel markets that have
been the root of the energy
crisis.
Along with celebrating these results, we also highlight the
importance of looking to future CfD allocation rounds. With
delivery dates for projects in this auction already going out to
2029, it is a reminder of the limited time available to contract
the generation needed to meet the Government's 2030 Clean Power
Mission. Additionally, not all the technologies required for net
zero have fully benefited from the CfD framework. For instance,
geothermal power still lacks robust support, and there is also an
opportunity to extend the life of existing low-carbon generation
assets nearing the end of their current contracts through the
CfD, preventing the premature loss of critical renewable
generation.”
