Wind energy – UK
The 4th round of the UK CfD auction scheme, designed to increase investment in low-carbon energy, has opened, aiming to support 12GW of new generation capacity.
The round of the scheme opened for applications today (13 December) and will close on 14 January 2022.
It will provide £285m of support annually to low-carbon energy generation, in what the Department for Business, Energy and Industrial Strategy (BEIS) is dubbing the largest package to date under the scheme.
The majority of the funding – £200m annually – will be made available for offshore wind. This is perhaps to be expected, given that the UK is striving to host 40GW of offshore wind by 2030. Offshore wind is, at present, the only renewable energy sub-sector with its own Sector Deal.
There is no capacity cap on the offshore wind budget. Trade body RenewableUK is estimating that more than 16GW of offshore wind could be ready to compete in the round.
BEIS itself is basing calculations on around 7GW of offshore wind.
There is also a specific £24m annual allocation for floating offshore wind technologies and a £20m allocation for tidal stream projects.
BEIS said in a statement that supporting a mix of technologies “will ensure we have a more secure, more resilient energy system and support the UK’s transition to net-zero through a greater range of energy sources”. Overall, the Department is aiming for the round to support 12GW of new capacity.
BEIS has emphasised the need for more offshore wind in the net-zero transition, and the project’s plans to create green jobs. It has also welcomed Vattenfall’s commitment to invest £15m in a Community Benefit Fund in Norfolk.