Labour rewrites CfD rules to back more renewables growth

Staff
By Staff
3 Min Read

The government has announced significant reforms to its Contracts for Difference (CfD) scheme, aiming to accelerate the deployment of renewable energy projects and provide greater certainty for investors.

One of the key changes is the extension of CfD contract lengths from 15 to 20 years for offshore wind, onshore wind and solar power projects.

This move is intended to distribute costs more evenly over time for consumers and offer more financial certainty to investors.

By providing a longer revenue stream, the government anticipates that this will lower financing costs and project risks, thereby encouraging more investment in renewable energy infrastructure.

Additionally, the government has reformed the auction budget-setting procedures.

Now, the Energy Secretary can review developer bids before finalising the budget, allowing for more precise capacity procurement and better consumer value.

This change aims to ensure that the allocation of funds aligns more closely with market conditions and project readiness.

These reforms are part of the government’s broader strategy to increase offshore wind capacity from around 15 GW to 43-50 GW by 2030.

By providing a more stable and predictable investment environment, the government hopes to attract the necessary capital to meet its ambitious clean energy targets.

Image: Getty Images

The changes also include relaxing eligibility criteria for offshore wind projects. Projects that have not yet obtained full planning consent can now participate in near-term allocation rounds.

This adjustment is intended to improve competitive tension and accelerate the development of new projects.

Energy Secretary Ed Miliband stated, “These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs.”

The government’s commitment to reforming the CfD scheme underscores its dedication to transitioning to a low-carbon economy and achieving net-zero emissions.

By making these strategic adjustments, Labour aims to solidify the nation’s position as a global leader in renewable energy development.

Labour rewrites CfD rules to back more renewables growth appeared first on Energy Live News.

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