Onshore wind and solar to be included in UK's next CfD auction

The next round also includes proposals to include floating offshore wind, and will be changed to facilitate the deployment of energy storage, says the Department for Business, Energy and Industrial Strategy (BEIS), announcing a consultation on the scheme. Both solar and onshore wind schemes were excluded from the CfD scheme in 2016, mainly because of concerns over the visual effects of large schemes, despite their low cost of generation. 

Funded by a levy on electricity consumers via suppliers, the CfD scheme is the government’s main mechanism for supporting new renewable energy generation projects. Successful generators receive top-up payments over the course of 15-year contracts with the government’s Low Carbon Contracts Company when market reference prices are low – these provide income stabilisation for new projects. 

The renewables industry welcomed the announcement. Trade association RenewableUK’s Chief Executive Hugh McNeal said: ‘The government is pressing ahead with action to meet our net zero emissions target quickly and at lowest cost to consumers and businesses. Backing cheap renewables is a clear example of the practical action to tackle climate change that the public is demanding, and this will speed up the transition to a net zero economy.’ 

RenewableUK added that a new auction will allow the pipeline of ‘shovel-ready’ onshore wind projects – those that have already gone through the planning system and secured consent – to compete for contracts to provide new renewable generation capacity. 

Solar Trade Association Chief Executive Chris Hewett added: ‘Today’s announcement marks a major shift in the right direction for government policy on onshore renewables, and a welcome opportunity for the solar industry. The government is backing a winner in solar, which is not only the UK’s most popular energy technology, but also highly cost-effective.’ 

In addition, local communities are to have a more effective voice on developments that impact them, through proposals for tough new guidance on community engagement for developers of onshore wind across Great Britain, says BEIS. Secretary of State for Business and Energy Alok Sharma said: ‘Ending our contribution to climate change means making the UK a world leader in renewable energy. We are determined to do that in a way that works for everyone, listening to local communities and giving them an effective voice in decisions that affect them.’ 

The consultation closes on 22 May.