- The REA welcomes today’s announcement of additional £22 million investment for allocation round 5 of the Contracts for Differences (CfD) scheme;
- It is essential that the UK remains an attractive market for low carbon investment;
- The REA highlights that the Government should address current grid connection delays and planning barriers to keep up with UK’s net zero goal.
The REA (Association for Renewable Energy and Clean Technology) has welcomed the announcement made by Government today of an additional funding to the Contracts for Differences (CfD) scheme. The extra £22 million will go towards established and emerging renewable technologies contributing to the UK’s domestic renewable capacity.
It is crucial that the Government continue to make the UK an attractive place for low carbon investment and although today’s announcement is a positive step, the REA reiterates the need for Government to address current barriers to entering the market such as grid connection delays and the planning process if the UK is to meet its net zero target.
Mark Sommerfeld, Deputy Director of Policy at the REA (Association for Renewable Energy and Clean Technology) said:
“The Government has sent a welcome signal that it is still committed to accelerating the deployment of renewable energy. The additional £20million for established technologies and extra £2million for emerging technologies will help provide confidence to successful projects in this upcoming Contract for Difference allocation round that they will be able to build out, even in the face of the current difficult economic climate. This is a positive step in contributing to the domestic renewable capacity that the UK desperately needs.
“Renewable and clean technologies provide the cheapest forms of energy and can drive down energy costs for consumers, while delivering energy security by having a reliable and secure domestic energy supply that is unaffected by volatile fossil fuel markets. In an increasingly competitive international investment landscape due to the US Inflation Reduction Act and EU’s Green Deal Industrial Plan, it is essential that the Government clearly signals that the UK remains an attractive and lucrative market for low carbon investment.
“While today’s announcement is welcome, the Government needs to provide clear policy direction on overcoming the wider barriers to entering the market. Grid connection delays and the planning process continue to hold back the UK’s renewable capacity and deter essential investment. Ultimately, failure to address these barriers will not only result in the Government missing its net zero target, but also increased costs for consumers.”