REA comments on amendments to the Contracts for Difference auctions

Frank Gordon, Head of Policy at the REA said:

“By consulting on reopening the Pot 1 Contracts for Difference auctions, a long standing REA ask, the Government is showing leadership and commitment to meeting the UK’s Net Zero targets. We need to be using all the renewable energy and clean technology at our disposal and Pot 1 offers some of the most advanced and cheapest solutions available.

“Although we are disappointed not to see continued support for biomass conversion or Bioenergy Carbon Capture and Storage projects, the benefits of reintroducing these technologies into the auctions will be far-reaching reducing carbon-emissions, consumer bills and creating green jobs around the UK. This alone will not be enough to meet our Net Zero targets but it is a great first step and we’re looking forward to seeing how this fits into the Government’s wider decarbonisation strategy.”



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External Affairs Officer

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Notes to editors

  • The full Consultation is available here:
  • The Government is proposing the reintroduction of Pot 1, such as onshore wind, solar, sewage gas, landfill gas, energy from waste with CHP.
  • Technologies such as energy from waste and combined heat and power projects have the potential to decarbonise the ‘hardest to treat’ heat sector as well as the power sector.
  • The net cost to Government and energy bill payers of CfD contracts is now projected to be so low that today’s decision is expected to be a revenue generator for Treasury, with new projects effectively paying for the confidence of long term energy contracts. The Treasury’s own analysis suggested this could be around £250m per year by the mid-2020s. This will in turn reduce the bills of the consumers.
  • REA statistics has found that following the ban on onshore wind and the closure of the Feed-in tariff around 9000 green jobs were lost. Modelling from Bloomberg also suggests that jobs in the ‘smart’ energy sector could possibly double to around 150,000 by 2032 with the right support. Reopening Pot 1 is a big step in creating this support.
  • Moving forward the REA will be responding to the Consultation. We hope to ensure that Bioenergy with Carbon Capture and Storage Technologies (a technology regarded by the Committee on Climate Change as critical to getting to net zero by 2050) will be supported within these reforms. We also hope to see a wide range of technologies incorporated into the Government’s decarbonisation plans.

About the REA

The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

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