£22 Million More For UK’s Renewables Auction

Energy Department Sends ‘Powerful Signal’ To Industry By Expanding AR5 Budget To £227 Million

£22 Million More For UK’s Renewables Auction

Launched in March 2023, UK’s AR5 auction round initially had a budget of £205 million which has now been raised to £227 million. (Illustrative Photo; Photo Credit: geniusksy/Shutterstock.com)

  • UK has increased the overall budget of the AR5 under its CfD scheme by £22 million  
  • Of the total £227 million, pot 1 with solar as a participating technology, gets an additional £20 million  
  • Pot 2’s budget has been raised to £37 million with an increase of £2 million, according to the department

The UK Department for Energy Security and Net Zero has expanded the total budget of the country’s flagship renewable energy support program, pitching in an additional £22 million for Allocation Round 5 (AR5) under the Contracts for Difference (CfD) scheme, saying it sends a ‘powerful signal’ to the industry and increases developer confidence in the sector.   

With this additional amount, the total budget of AR5 now stands at £227 million. Pot 1 of established technologies now has a budget of £190 million, up from £170 million previously. Solar PV is competing against hydro, landfill gas, offshore & onshore wind, remote island wind, among others in pot 1.  

Budget of pot 2 increases by £2 million to a total of £37 million. The AR5 was launched in March 2023 with a total budget of £205 million, with last date of submissions being April 24, 2023 (see UK’s CfD Allocation Round 5 Open).  

Announcing the rationale behind the increase, Energy Security Secretary Grant Shapps explained, “Today’s funding through our flagship Contracts for Difference scheme – the lifeblood of our renewables industry for nearly a decade – will help grow our economy by making Britain the first choice for investors in renewable energy projects and secure skilled jobs for future generations.” 

While the results of AR5 are yet to be declared, Head of Markets for the National Grid Electricity System Operator Claire Dykta said, “Following our evaluation of qualifying projects we welcome the Secretary of State’s decision to revise the budget for Allocation Round 5.”

About The Author

Anu Bhambhani

SENIOR NEWS EDITOR Anu is our solar news whirlwind. At TaiyangNews, she covers everything that is of importance in the world of solar power. In the past 9 years that she has been associated with TaiyangNews, she has covered over thousands of stories, and analysis pieces on markets, technology, financials, and more on a daily basis. She also hosts TaiyangNews Conferences and Webinars. Prior to joining TaiyangNews, Anu reported on sustainability, management, and education for leading print dailies in India. [email protected]

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