Skip to main contentThe new Labour government has celebrated a major milestone in its renewable energy agenda with the results of the latest Contract for Difference (CfD) auction. 131 renewable energy projects secured funding, marking a significant step forward in the UK’s transition to clean energy. Among these projects are some of the most ambitious in the world, including the largest floating offshore wind scheme and Europe’s largest offshore wind farm.
A Boost to the UK’s Renewable Capacity
Announced on 3rd September, the sixth CfD auction round saw an impressive 9.6 GW of generating capacity awarded funding, enough to power 11 million UK homes once operational. This represents a significant increase in the UK’s renewable energy potential and will go some way to achieve the government’s commitment to decarbonise the UK’s power grid by 2030.
Key Projects Leading the Charge
Energy Secretary Ed Miliband expressed his enthusiasm for the auction results, noting that the additional £1.5 billion allocated for this round has successfully incentivised low-carbon investments. The auction’s outcome contrasts sharply with last year’s disappointing AR5 auction, which saw no offshore wind bids. This year, nine offshore wind projects received contracts, including two of Europe’s largest wind farms, Hornsea 3 and Hornsea 4, located off the Yorkshire coast.
The auction also saw groundbreaking progress in floating offshore wind technology. The Greenvolt project, which secured a 15-year CfD, will develop 35 floating wind turbines off the Scottish coast. This project alone will add 560 MW of renewable capacity and double Europe’s total installed floating offshore wind capacity by 2029.
Diverse Renewable Energy Portfolio
In addition to offshore wind, the CfD auction supported a diverse range of renewable energy sources. For the first time, six tidal power projects secured funding, contributing to the UK’s goal of diversifying its renewable energy mix. Ground-based solar also made a strong showing, with 93 projects awarded contracts, adding a combined capacity of 3.2 GW.
These CfD results were announced just days after the UK achieved a historic milestone of 30 GW of wind generation capacity, following the opening of SSE Renewables’ 443 MW Viking Wind Farm on the Shetland Islands.
Looking Ahead
This record pipeline of clean energy projects is a crucial step towards the government’s goal of decarbonising the UK’s power grid by 2030. With strong support for offshore wind, tidal power, and solar energy, the UK is well on its way to a greener, more sustainable energy future.
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