Energy UK responds to the Government’s announcement on the next Contract for Difference auction

Responding to the Government’s announcement on the next Contract for Difference auction, Energy UK’s Deputy Director, Adam Berman said:

“The only long-term route to bringing down bills is through a rapid expansion of clean, cheap, homegrown power. The Contracts for Difference scheme has played a hugely successful role in delivering such low carbon projects at falling prices.

“While we warmly welcome the introduction of annual auctions, there are real concerns that the Government hasn’t properly recognised the cost increases and other challenges that have accumulated for renewables projects over recent months. The auction parameters announced today do not appear to reflect a much-changed picture for developers since the last auction. This brings the risk that it will not deliver the amount of projects and capacity that we urgently need to ensure our energy security, cut bills, and reduce emissions. We will continue to work with the Department for Energy Security and Net Zero on the details of the scheme, but the Government risks putting its own targets in jeopardy if it doesn’t adapt the scheme to recognise the realities of building new renewables projects amidst rising costs and increased international competition”.