Contracts for Difference (CfDs) have been awarded to almost 10.8GW of low-carbon generators in largest auction round to date, including nearly 7GW of offshore wind and more than 2.2GW of solar.
The five offshore wind projects to secure contracts cleared at a new record-low strike price of £37.35/MWh – down from £39.65/MWh in the previous auction round in 2019.
The fourth allocation round for delivery in 2023/24 onwards also saw contracts awarded to the first floating offshore wind and tidal projects, as well as nearly 1.5GW of offshore wind, of which nearly 600MW is located on remote islands.
CfDs were won by a single 32MW floating wind farm at a strike price of £87.30/MWh and four tidal stream projects with a combined capacity of nearly 41MW at a strike price of £178.54/MWh.
The solar projects cleared a strike price of £45.99/MWh, whilst the regular onshore wind projects cleared at £42.47/MWh and the remote island wind projects at £46.39/MWh.
CfDs were awarded to 93 projects in total – more than in the previous three rounds combined.
“Eye-watering gas prices are hitting consumers across Europe. The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills,” said business and energy Kwasi Kwarteng.
“Thanks to today’s record renewable energy auction, we have secured almost 11GW of clean, home-grown electricity– which would provide as much power as around 6 gas fired power stations.
“These energy projects already have planning permission, now they have a funding contract in place. We’re going to these projects built as soon as possible to better protect millions of British families from rising costs.”
Energy minister Greg Hands said: “This fourth round shows the government’s Contracts for Difference scheme continues to be a roaring success.
“Not only has it secured a record capacity of clean electricity, it ensures the UK will have a future powered by a resilient and diverse supply of homegrown energy by bringing forward a greater range of renewable technologies than ever before.”
Renewable UK deputy chief executive Melanie Onn commented: “Today’s record-breaking auction results show that there is a way to replace unaffordable gas with low-cost clean power generated by a wide range of renewable technologies led by wind, both offshore and onshore. Thanks to the rapid construction times of new onshore wind and solar sites, billpayers will start to feel the benefits of today’s auction next year.
She continued: “The auction also showed that the UK is maintaining its position as a world-leader in innovative renewable energy technologies like tidal stream and floating wind, which will both play an increasingly significant role in our transition to clean power to meet our net zero goal.”
Note: All strike prices quoted in 2011/12 prices.