The UK government's commitment to renewable energy is receiving a significant boost with the injection of £22 million into the Contracts for Difference (CfD) scheme. This funding will support well-established technologies like solar and offshore wind, further promoting their growth and development.
The government has announced an additional £22 million in support for renewables through the flagship Contracts for Difference scheme, bringing the total budget for this auction to £227 million.
Launched in 2014, the scheme promotes low-carbon electricity generation and has significantly increased the share of renewable energy in the UK's power mix. In 2022, renewables accounted for about 42% of the country's electricity generation, compared to 7% in 2010.
The goal of achieving a decarbonized power sector by 2035 and reaching net-zero emissions by 2050 is further solidified by a record-breaking 48% of the UK's electricity generated from renewables in Q1 2023. With additional funding and annual auctions, investments in the nation's renewable industry will receive a boost, reinforcing energy security, stimulating growth in the green sector, and reducing exposure to volatile global gas prices.
The funding increase for established and emerging technologies will be augmented, and £10 million will be ring-fenced for tidal stream projects.
This boost in funding will send a powerful signal to the industry, bolstering developer confidence and enhancing the UK's reputation as an attractive destination for investment and economic growth. Notably, the renewable electricity sectors supported approximately 25,000 jobs in 2021.
Visit the Gov website for the full press release.