REA comments on CfD auction results
Commenting on the result, Frank Gordon, Head of Policy at the REA said:
“The CfD announcement is a landmark moment for the industry, seeing offshore and remote island wind offering clean energy below the projected wholesale cost of electricity, a great achievement.
“We must recognise this success and the support that has got us there, however, we must also acknowledge that one type of technology is the primary beneficiary of this support. The CCC’s Net Zero report stated that a combination of renewable technologies are needed to eradicate fossil fuels from the energy mix and to reach net zero by 2050; for this to happen, the Government must ensure a fair and inclusive route to market for all technologies. For example by reinstating a reserved capacity for wave and tidal technologies and advanced conversion technologies, that can deliver added Industrial Strategy benefits to the country by virtue of being largely manufactured and developed in the UK.”
“As the winning ‘Strike Prices’ are below the projected wholesale cost of electricity, the projects will effectively be ‘paying back’ to consumers on each unit of electricity they produce. Not only does this show that renewables can lower the net cost of energy for consumers, as has long been argued, but this saving could be recycled back into extra support for climate action – to meet the net-zero target and to support a wider set of renewable technologies.”
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Notes to editors
• The full results of the Contract for Difference Round 3 auction can be found here.
About the Renewable Energy Association (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.
For more information, visit: www.r-e-a.net