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By Jaime Llinares Taboada
The UK government said on Monday it was launching its largest round of contracts for the difference for renewable energy capacity.
Contracts for difference provide stable income to power producers over a period of 15 years, protecting them from the vagaries of the wholesale electricity market and encouraging investment. These contracts are awarded to the cheapest bids through an auction process, which promotes efficiency and lower costs.
This will be the fourth round of the CfD program, which aims to double the renewable capacity obtained in the third round. It includes a pot of £ 265m ($ 366.6m) to support projects, of which £ 200m will be supplied to offshore wind.
“The additional offshore wind capacity resulting from the funding alone could power around 8 million homes,” the government said.
For the first time since 2015, established renewable technologies – wind and terrestrial solar – will also be able to bid.
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT
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