The UK government's Department for Business, Energy & Industrial Strategy (BEIS) has concluded the country's largest Contracts for Difference (CfD) auction round 4, securing 'almost' 11 GW renewable energy capacity, which comprises 2.2 GW solar PV technology.
It was the 1st time solar PV got to participate in the CfD auction rounds, and achieved a strike price of £0.04599 per kWh, 2% lower than £0.047 per kWh capped. This 2.2 GW capacity needs to come online between 2023-24 and 2024-25 to supply power for 15 years under private law contracts signed with government owned CfD manager Low Carbon Contracts Company (LCCC).
Offshore wind secured the maximum with almost 7 GW, followed by onshore wind with 900 MW, 41 MW tidal stream and 32 MW floating offshore wind.
The government had allocated £295 million annually for this round, all of which was exhausted to support 93 projects with existing planning permission across England, Scotland and Wales.
"Eye-watering gas prices are hitting consumers across Europe. The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills," said Business and Energy Secretary Kwasi Kwarteng. "Thanks to today's record renewable energy auction, we have secured almost 11GW of clean, home-grown electricity – which would provide as much power as around 6 gas fired power stations."
The CfD auctions have been held every 2 years but from March 2023, their frequency will be annual. The government says these competitive auctions provide greater certainty and stability of revenues to power generators and protecting consumers from volatile electricity prices.
List of winners and winning projects under the auction round is available on BEIS website.
The UK targets to achieve about 70 GW of total installed solar energy capacity by 2035 under its Energy Security Strategy released in April 2022 (see Britain Releases New Energy Security Strategy). Moreover, today's energy supply crisis, which as sent energy prices through the roof, British citizens are turning towards solar. A recent Guardian article quoted data from consumer credit reporting company Experian, which shows that about 1.9 million households plan to install solar panels or other renewable capabilities this year, according the UK news paper.