The UK’s onshore wind and solar energy sectors could benefit from a new lease of life after a government rethink on support as it pushes towards ambitious 2050 carbon reduction goals. The UK government is to allow onshore wind and solar PV projects to once more compete for the Contracts for Difference (CfD) mechanism, which underpins guaranteed revenue from energy sales for 15 years. Investment in onshore wind and solar PV has been lagging since the withdrawal of government support via the Renewables Obligation scheme in 2015. Last year saw just 1GW of solar PV and onshore wind projects delivered, compared with an average of 3.2GW annually for the previous 5 years and 4.7GW for 2015 alone. The first of the new, biennial CfD auctions will take place in 2021 and allowing onshore wind and solar back in is expected to spur investment in both technologies, says Andreana Todorova, JLL Energy & Infrastructure Advisory.
The Investor 11th March 2020 read more »