Record contracts for distinction (CfDs) auctions for UK photo voltaic ends in greater than 90 tasks securing fixed-price contracts. This follows intervention from the brand new UK authorities in summer time 2024 to extend the public sale funds. The strike costs achieved for all renewable applied sciences are effectively under the public sale ceiling worth.
CfDs have been awarded to 93 photo voltaic tasks with a complete of three.288 GW of capability, a brand new document for UK renewables auctions. Solar tasks fetched a strike worth of GBP 50.07 ($64.25)/MWh, almost 18% under the public sale ceiling worth. Strike costs in UK CfD auctions are expressed in 2012 costs, with the generator receiving the equal adjusted for inflation. In whole, 131 bids have been profitable within the CfD public sale.
The end result follows intervention from the brand new UK authorities in summer time 2024 to extend the CfD public sale funds to over GBP 1.5 billion. This consists of an extra GBP 65 million for Pot 1 of the public sale, which is open to photo voltaic tasks over 5 MW. In whole, 9.65 GW of capability was allotted which signifies that photo voltaic accounted for 34% of the sixth spherical of the public sale.
Successful builders will now be awarded a contract by the state-owned Low Carbon Contracts Company (LCCC). They will then be paid a flat fee of electrical energy over a 15-year interval, ranging from a set supply yr. Around 1.1 GW of photo voltaic secured CfD for supply yr 2026/2027 within the public sale, with the remaining 2.2 GW of contracted capability awarded for supply yr 2027/2028.
The sixth spherical of the CfD public sale is a step change in capability allocation for photo voltaic in comparison with the 5 rounds. Just underneath 2 GW of capability throughout 56 tasks has been awarded within the fifth UK CfD public sale, which takes place in September 2023.
By area, England accounts for the lion’s share of photo voltaic allocation with round 2.9 GW of capability securing a CfD contract. The remaining capability is break up between 316 MW of photo voltaic tasks in Scotland and 74.88 MW of tasks in Wales.
In a press release, Ed Miliband, secretary of state for the Department of Energy Security and Net Zero, described the fifth spherical of the public sale as “disastrous” and claimed that the sixth spherical was an “vital step” in direction of the goal of presidency to decarbonize the electrical energy sector by 2030.
“These outcomes present that collectively, this authorities and the power trade guarantee funding in our nation. This public sale has generated a document variety of photo voltaic tasks that strengthen our mission for a photo voltaic revolution, we run onshore wind, get the most important industrial floating offshore wind undertaking on this planet and get the offshore trade on its toes,” he mentioned.
Mark Sommerfeld, deputy director of coverage at REA (the Association for Renewable Energy and Clean Technology), mentioned that the document ranges of photo voltaic and offshore wind obtained at “aggressive strike costs” characterize actual progress in direction of decarbonized power system.
“This improvement will present actual returns, create jobs and shield shoppers from the volatility of worldwide fossil gas markets which were on the root of the power disaster,” mentioned Sommerfeld.
This content material is protected by copyright and is probably not reused. If you need to cooperate with us and need to reuse a few of our content material, please contact: [email protected].
Popular content material
