Onshore wind energy projects on remote islands in the UK will be allowed to compete for subsidies in the upcoming Contracts for Difference (CfDs) auction.
The UK Government said remote island onshore wind will be classified as a separate technology in the auction – projects with a capacity of 5MW and more will be able to take part.
It is expected to “increase diversification of the UK electricity supply and increase competitive tension” within the auction, bringing down the costs of decarbonisation and improving security of supply.
Under the CfD scheme, low carbon electricity generators are incentivised for the power they produce.
BEIS states: “Inclusion of remote island wind (RIW) could increase competitive tension, one of the key means by which the scheme ensures that projects are delivered at least cost.”
The next auction is scheduled for Spring 2019, with up to £557 million worth of funding available.
The announcement follows the government’s pledge to end support for new onshore wind projects in England.