DECC boosts renewable auction budget to £300m

The UK Government has increased the subsidy budget for renewable energy projects that will be supported under the Contracts for Difference (CfDs) scheme. Renewable energy generators will now be able […]

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By Priyanka Shrestha

The UK Government has increased the subsidy budget for renewable energy projects that will be supported under the Contracts for Difference (CfDs) scheme.

Renewable energy generators will now be able to bid for guaranteed payments of £300 million – a £95 million rise from the initial announcement in July.

DECC said it has been able to increase the CfD budget because the latest estimates of the overall costs of other policies, the Renewables Obligation in particular, are “lower than expected”.

The start date for the auction has been delayed by a few days to the 16th of October.

The revised budget will be split into three groups – “more established technologies” like onshore wind, solar and energy from waste with combined heat and power (CHP) will be offered £50 million for projects commissioning in 2015/16 and £15 million for 2016/17.

“Less established technologies” such as offshore wind and marine energy will be offered £155 million for 2016/17 and £80 million for 2017/18.

No budget has yet been released for the third pot – which includes biomass conversions.

Energy Secretary Ed Davey said: “We are transforming the UK’s energy sector, dealing with a legacy of underinvestment to build a new generation of clean, secure power supplies that reduce our reliance on volatile foreign markets.”