UK's CfD auctions prove renewables are highly cost effective form of new energy generation

Announced Date :  Sep 11, 2017

The UK government's renewable power auction shows that there can be significant cost decline for renewable energy generation technologies.
A number of Advanced Conversion Technology (ACT) projects, which involves the gasification or pyrolysis of waste, secured funding alongside offshore wind and biomass CHP in this “Contracts for Difference” (CfD) auction for “Less Established Technologies.” The last such auction took place in 2014, with results announced in 2015. As there was no dedicated (or “ringfenced”) funding for wave or tidal projects this round, none secured a contract.

The projects announced today are set to generate 3.3GW of electricity.

James Court, Head of Policy and External Affairs at the Renewable Energy Association said:

“The latest renewables auction show huge price reductions across the board, with offshore wind, energy from waste and biomass clearing at prices from £57.50-£74.75.

"These results show that renewables are now the most cost effective form of any energy generation which can future proof both the UK grid and provide sustainable new jobs in the UK.

"Offshore wind's success shows what can happen with government support, and consider that this auction was for so called 'less established' technologies, with the more mature onshore wind and solar blocked to market. Surely now is the time for the government to commit to a low carbon industrial strategy.”

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