The UK government is to put £265m up for grabs to support renewable energy projects in the upcoming Contracts for Difference auction.
Energy department BEIS has allocated offshore wind the lion’s share in the draft budget plan published today ahead of the delayed shoot-out, which is scheduled to open in December.
Some £200m is in the kitty in Pot 3 for fixed-bottom offshore wind projects. Officials have also proposed that the pot have no capacity cap.
Floating offshore wind will be able to bid for £55m in the Pot 2 less-established category, which includes tidal, geothermal and wave. BEIS wants to ringfence £24m for floaters in the pot, which again will feature no capacity cap.
Meanwhile, London has put £10m down for the return of the Pot 1 established technologies category, which will comprise onshore wind, solar and hydropower.
The total capacity cap for this category is 5GW, with both onshore wind and solar limited to a maximum of 3.5GW.
The budget figures are based on 2011-12 prices.
BEIS said the round aims to double the amount of power that was procured in the last CfD round, which concluded in 2019. CfD4 will not wrap up until the second or third quarter of 2022, despite a government pledge to hold a biennial auction.
Energy Minister Anne-Marie Trevelyan (pictured) said: “The Contracts for Difference scheme has helped the UK become a world leader in clean electricity generation and lowered prices for consumers.
“The new plans set out today deliver on the Prime Minister’s Ten Point Plan and will support the next generation of renewable electricity projects needed to power our homes and meet our world-leading climate change targets.”
Final levels of support and capacity could be higher and will be announced ahead of the round opening in December, added BEIS.