UK sets out plans for renewables support

15 November 2016

The UK government has announced plans to support a range of innovative renewable energy technologies in its next contracts for difference (CFD) auction.

It has published a draft document outlining a budget of £290 million across two delivery periods for offshore wind, wave, tidal stream, geothermal and biomass technologies.

Eligible technologies will compete for CFD support in an auction to be held in April 2017. Delivery years will be 2021/22 and 2022/23, the Department for Business, Energy and Industrial Strategy (BEIS) said.

“These are essential elements of the government’s plan to upgrade the UK’s energy infrastructure, lower our carbon emissions and spur on the growth of large scale, low-carbon energy – a key part of the global deal to tackle climate change agreed in Paris last year,” said Business and Energy Secretary Greg Clark.

Administrative strike prices for projects to be delivered in 2021/22 are £105/MWh for offshore wind, £310/MWh for wave energy, and £300/MWh for tidal stream. Eligible biomass projects will include advanced conversion technologies, anaerobic digestion and dedicated biomass with CHP.

Biomass technologies will receive £115-140/MWh for deployment in 2021/22.

The government says it will consult on establishing a strike price for geothermal technologies, as well as on the treatment of onshore wind projects planned for islands.

The government has also launched a consultation on the proposed steps for phasing out electricity generation from coal-fired power stations in the next decade.


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