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RenewableUK calls for government to raise CfD cap by 25%

Raising the CfD cap to at least 15GW would be a 25% increase in capacity. Image: Getty

Raising the CfD cap to at least 15GW would be a 25% increase in capacity. Image: Getty

RenewableUK’s new chief executive Dan McGrail is calling for greater ambition in the next round of Contracts for Difference (CfD) auctions.

A cap of 12GW is currently in place, with McGrail now urging ministers to raise this to at least 15GW, a 25% increase in capacity.

The fourth round of auctions is to open in December, with solar and onshore wind once again eligible to take part.

Over 14GW of clean energy capacity – including solar, wind, marine power and other technologies – is already eligible to compete, RenewableUK said, with this having the ability to rise to 23GW by the end of the year if the immediate pipelines of projects currently seeking planning approval are consented in a timely manner.

Alongside the increase in the cap, RenewableUK is also calling for CfD auctions to be held annually from 2023 onwards as opposed to once every two years. This would maintain a constant, steady flow of new projects, helping to smooth out deployment, build up the UK supply chain and enable further cost reductions.

This follows the Association for Renewable Energy and Clean Technology (REA) calling for six monthly CfD auctions with a clear rolling timetable and sufficient budgeting last week.

"The government has said it wants to build back better after the pandemic and public support for renewables is sky-high," McGrail said.

"As the UK is hosting the biggest international climate change summit for years in Glasgow in November, there will never be a better moment to kickstart the Prime Minister’s Green Industrial Revolution”.

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