U.K. Begins Renewable Energy Program’s Largest Funding Drive

(Bloomberg) -- The U.K. opened the largest-ever round of funding for its renewable energy program in a push for low-carbon technology.

The fourth round of the government’s Contracts for Difference regime aims to secure 12 gigawatts of new electricity capacity, with 285 million pounds ($378 million) a year available to new energy projects, according to a statement published Monday. That’s more capacity than the previous three rounds combined.

“By generating more renewable energy in the U.K., we can ensure greater energy independence by moving away from volatile global fossil fuel prices, all while driving down the cost of new energy,” Business and Energy Secretary Kwasi Kwarteng said in the statement.

The U.K. had about 101 gigawatts of electricity generation capacity in 2020, according to government data. That means that the new round of contracts alone could increase capacity by around 12%.

The funding round is open to offshore wind, which is allocated 200 million pounds of the total pot, as well as onshore wind, solar, tidal and floating offshore wind projects. 

Contracts for Difference are a mechanism used to guarantee fixed prices for energy projects to help make them more commercially attractive to developers.

©2021 Bloomberg L.P.