Green industrial revolution in sight as government sets out plans for more clean energy. The fourth round of the Contracts for Difference (CfD) scheme, opening late 2021, will aim to double the capacity of renewable energy compared to the last round and expand the number of technologies supported. The fourth round aims to increase the capacity of renewable energy from the 5.8GW achieved in the last round to up to 12GW, which could be enough to power 20 million electric cars on the UK’s roads in any year. Government support to unleash the potential of offshore wind generation has seen the cost of it fall by two thirds in the last 5 years. Given its long-term potential to support the country’s 2050 net zero target, offshore wind projects will compete in their own ‘pot’ in the next auction process rather than against other technologies as they have previously. Last year’s third round delivered record-low prices and secured enough clean energy to power over 7 million homes. Today’s plans set out changes to the structure of the scheme to build on that success. Floating offshore wind projects will be able to bid for contracts for the first time, allowing wind farms to be built further away from the shoreline where it is windiest and increasing the UK’s renewable energy capacity even further. And as announced in March, solar and onshore wind projects will be able to bid for the first time since 2015, coupled with a commitment to update guidance for new onshore wind schemes in England to fully reflect the impacts and benefits to local communities.
BEIS 24th Nov 2020 read more »