The renewables industry has welcomed the Government’s announcement that it is increasing the frequency of CfD auctions.
From March 2023, auctions will be held every year rather than every two years in a move aimed at increasing energy security and decarbonisation progress.
Business and Energy Secretary Kwasi Kwarteng said: “We are hitting the accelerator on domestic electricity production to boost energy security, attract private investment and create jobs in our industrial heartlands.
“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.”
Kwarteng said the CfD system had been a major success since its launch, and he highlighted the dramatic reductions achieved in the cost of offshore wind.
RenewableUK’s Chief Executive Dan McGrail described the increased in auction frequency as a “major step forward” on the path to net zero.
“It's good news for consumers too, as it means the UK will be reducing its vulnerability to volatile international gas prices and increasing the volumes of low-cost renewable energy in our energy system,” he said.
“There's a huge appetite among renewable energy developers to invest in building more projects, which will help to grow the UK supply chain at a faster rate.”