- The UK will commence Contracts for Difference (CfD) tenders annually.
- The CfD tenders were previously carried out bi-annually.
- The move will enhance the development of renewable energy projects.
The United Kingdom (UK) has announced that it will be holding Contracts for Difference (CfD) tenders every year, with the next one planned for March 2023. According to the announcement, switching from a two-year cycle to an annual schedule will accelerate the state’s rollout of low-cost renewable energy.
“The more clean, cheap and secure power we generate at home, the less exposed we will be to expensive gas prices set by international markets,” Business and Energy Secretary Kwasi Kwarteng stated.
CfDs have supported some 16GW of new low-carbon electricity capacity, including 13GW of offshore wind. Allocation rounds under this programme have been held approximately every two years since they were launched in 2014. The government opened the fourth allocation round in December 2021, seeking to back up to 12GW of renewables with an annual budget of GBP 285 million (USD 386m/EUR 338m).
According to the state, the scheme has helped reduce the per-unit price of offshore wind by about 65 per cent since the first auctions were held. The UK’s objective is to achieve a fully decarbonised electricity system by 2035.