On 24 July, the UK Department for Energy and Climate Change (DECC) announced a budget of £205m for renewable energy projects. This funding is the first allocation round for the new Contracts for Difference (CfD), a subsidy program that aims to provide long-term certainty and reduce risk for investors (The CfD has replaced the Renewables Obligation (RO)) . Sounds too good to be true? There is a twist, the different technologies will have to compete for a share of the money and onshore wind only has access to £50m, just 24 per cent of the total amount.
The budget will be split between established technologies, such as solar power and onshore wind (more than 5M), and immature technologies, such as offshore wind and tidal power. The final budgets are due to be confirmed in September, with the first auction taking place in October. The government has consistently maintained that competition between different clean energy technologies is essential to ensure decarbonisation is delivered at the lowest cost.
It is certainly encouraging to see the government continuing to support the renewable energy sector and appreciate the positive impacts it can have. Projects such as small scale onshore wind turbines can create green jobs, reduce the UK’s reliance on imported energy, lower energy bills and provide electricity to millions of homes. Renewable energy is crucial in securing the supply of clean energy for future generations and decreasing the current levels of greenhouse gas emissions. The UK has potential for wind power and continued investment will see further development of the technology and engineering required to make wind power the best choice for power generation.
https://www.gov.uk/government/news/over-200-million-boost-for-renewables/