The UK has picked 131 new renewable energy projects to support under the CfD scheme’s AR6
Offshore wind was the major winner, thanks to the government increasing the overall budget of this round
Selected solar PV projects represented a combined 3.3 GW capacity for a strike price of £50.07/MWh
The United Kingdom (UK) has concluded Allocation Round 6 (AR6) under its flagship Contracts for Difference (CfD) scheme as its most successful renewables auction to date, awarding a total of 9.648 GW across various technologies.
It selected 131 new green infrastructure projects that, according to the government, will power an equivalent of 11 million British homes.
Solar PV won a combined 3.288 GW capacity for a strike price of £50.07/MWh, as against the administrative strike price of £61/MWh, around 18% lower than the ceiling.
Almost 3 GW of this PV capacity will be located in England, 316 MW will come up in Scotland, and the remaining 74.88 MW in Wales, according to the Department for Energy Security and Net Zero. The PV project with the largest capacity in the list is the 299 MW Longfield Solar Energy Farm Limited of EDF Renewables, which will have a co-located battery energy storage system (BESS).
Offshore wind was the largest winner with 3.363 GW capacity, all of which is to come up in England. The strike price for this technology was 19.36% lower at £58.87/MWh, compared to the official cap of £73/MWh. Winning projects are scheduled to come online in 2026/27, and 2027/28.
These results follow the government’s decision to increase the AR6 budget by 50%, which was 7 times bigger than the previous ‘disastrous’ auction round when no offshore wind projects were selected (see UK’s Labour Government Expands Contracts For Difference Budget For Allocation Round 6).
“The success of this allocation round not only boosts our ability to decarbonise the economy and enhance energy security, but also unlocks exciting new opportunities for innovation and growth. We look forward to working closely with our new generators to deliver these projects, accelerating the delivery of net zero and a sustainable, low-carbon future,” said the CEO of Low Carbon Contracts Company Neil McDermott.
The complete list of winners is available on the government’s website. With AR6, the UK has now awarded 39 GW of renewable energy capacity in 372 contracts.
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