UK boosts renewable power auction budget by 50%

The UK government has boosted its annual renewable power auction budget by 50 per cent, increasing it to £1.5 billion ($1.92 billion) in an effort to decarbonise the electricity sector by 2030.

This move by the new Labour government aims to expand renewable energy capacity, including wind and solar power.

The budget increase supports Contracts for Difference (CfDs), providing government-backed price guarantees for electricity produced by renewable projects.

This record-high budget allows more projects to receive contracts, ensuring a minimum electricity price and covering differences when market prices fluctuate.

Energy Secretary Ed Miliband stated that this move will position the UK as a leader in green technologies and enhance energy independence.

The funding includes £1.1 billion for offshore wind, £185 million for onshore wind and solar, and £270 million for emerging technologies like floating offshore wind and tidal power.

Companies such as Iberdrola, Orsted, Equinor, RWE, SSE, and TotalEnergies can bid in this round. While the increased budget aims to meet the UK’s goal of expanding offshore wind capacity to 55 gigawatts by 2030, analysts warn it might still fall short, given past challenges in the sector.

Attribution: Reuters