The Ministry of Business, Energy and Industrial Strategy has announced the results of its latest round of renewable energy auctions.
Some 66 solar projects were awarded 15-year contracts for difference (CfDs) in the procurement campaign, which was considered a success despite falling short of expectations.
The government had set a target of 12 GW of new clean energy generation capacity and achieved nearly 11 GW. And fears that the £10m budget for solar and onshore wind would not attract the required 5 GW proved to be the case.
Under the CfD, applicants participate in competitive bidding and receive a guaranteed minimum strike price for the electricity they generate. Renewable energy power stations get wholesale electricity prices for their electricity, and if it is lower than the execution price agreed through auction bidding, the government will make up the difference. When clean electricity is above the strike price in the wholesale market, generators will refund the difference to the government.
The scale of the solar projects that landed this time ranged from the 6 MW Phase II project of the Oulton Solar Farm in East England to multiple 49.99 MW sites. The only exception is the Cleve Hill solar park in South East England, where 112 MW of its planned 350 MW capacity has been awarded a CfD.
Of the 66 solar projects, three are in Wales and three in Scotland. About 251 MW of CfD solar capacity will be connected to the grid in the 2023-2024 fiscal year, with the rest coming next year.
The auction also finalized nearly 7 GW of offshore wind capacity, nearly 600 MW of remote island wind turbines, 40 MW of tidal stream power, 32 MW of floating offshore wind farms, and a 30 MW of cogeneration technology Incineration power plant.
