The UK government’s flagship renewables scheme supporting low-carbon electricity generation projects has been given a major budget boost to over £1bn.
The funding increase to the latest Contracts for Difference (CfD) auction was confirmed by Chancellor Jeremy Hunt in the Budget.
The scheme guarantees developers a set price for their electricity, meaning that if prices are low, the government provides funding to fill the gap.
The £1bn figure compare to £227m in the previous round, marking a big uplift.
The latest auction is due to open on March 27. It is split into tech pots including a record £800m for offshore wind projects.
Separately, the chancellor this week confirmed further backing for the UK’s green industries, with an extra £120m for the Green Industries Growth Accelerator.
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Energy security secretary Claire Coutinho said: “When it comes to renewables, we have a record to be proud of. In 2010, just 7% of our electricity came from renewables, this is now up to over 40% today.
“We have the second largest renewables capacity in Europe, which is backed by £300bn of investment since 2010, with £24bn since September alone.”
Minister for nuclear and renewables Andrew Bowie said: “This unprecedented renewables budget funding to the tune of over £1bn will keep the UK at the cutting edge of the industry.
“This announcement will ensure we offer certainty to developers and continue to attract investment in the UK.”
Last year, the government increased the maximum price for offshore wind projects by 66% for the 2024 Contracts for Difference round.
Offshore wind projects could cost bill payers £1.5bn a year due to new Treasury rules, according to a Energy and Climate Intelligence Unit (ECIU) analysis.
