The UK Energy Security Secretary has made a £22m ($28m) increase in government backing for renewables – taking the total budget for the Contracts for Difference scheme to £227m.
The scheme – launched in 2014 – is the government’s main system for supporting low-carbon electricity generation.
Today’s new funding for the current round will mean an increased budget for established technologies such as solar and offshore wind – from £170m to £190m.
The budget for emerging technologies such as floating offshore wind was also increased from £35m to £37m. The scheme will also maintain a £10m ring-fenced budget for tidal stream projects.
The Contracts for Difference scheme has already helped accelerate plans to diversify, decarbonise and domesticate the UK’s energy supplies, with the last round (AR4) securing around 11GW of low carbon capacity – enough to generate sufficient electricity to power 12m British homes through nearly 100 clean technology projects.
The budget increase came as Deputy Prime Minister Oliver Dowden visited Able Seaton Port to announce the installation of the first of over 200 wind turbines at Dogger Bank – set to become the world’s largest offshore windfarm. When complete, the 277 turbines will be capable of powering the equivalent of up to 6m homes annually.
Renewables have been accelerating rapidly in the UK. In 2022, renewables fuelled around 42% of the UK’s electricity generation – up from 7% in 2010 – compared to around 21% in the US and 23% in Japan. In the first quarter of 2023, renewables generated a record 48% of UK electricity.