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The second Contracts for Difference auction has now launched allowing renewable energy developers to compete for £290M worth of contracts to help develop clean energy growth in Britain.
Contracts for Difference are won through a competitive process which drives down energy costs for consumers and guarantees companies a certain price for the low-carbon electricity they produce over 15 years. This gives them the support and certainty they need to attract investment and get projects off the ground.
These contracts form the first tranche of the government’s commitment to provide £730M of annual support for renewable energy projects.
Energy Minister Jesse Norman said: “This auction underlines that Britain is open for business to companies seeking to invest in low carbon energy.
“It is designed to deliver clean power to a million homes, create jobs in the energy industry and provide new supply chain opportunities, while reducing carbon emissions by some 2.5 million tonnes per year.”
Funded by a levy which comes through energy bills, the scheme will only award contracts which offer the best value for money. Energy bills will be unaffected until the projects are operational and producing low carbon energy.
The auction commenced on 3 April and will close in the autumn and which point winners will be announced.
In total, there has already been some £52Bn worth of investment in renewable energy in the UK since 2010 and by late 2016 exactly half of the UK’s energy came from low carbon sources. These contracts should help further develop the growth of clean energy in Britain.
Original Article