Successful CfD auction is positive news for UK renewable energy investment

The government has announced the results of its latest auction of Contracts for Difference for renewable energy projects.

131 new projects were funded through the allocation including a new wave of onshore wind following the removal of the de facto ban.

Sue Ferns, Senior Deputy General Secretary of Prospect, said:

“The success of the most recent CfD auction is positive news for renewable energy investment in the UK.

“This is hopefully the start of a long-term trend proving the certainty investors need which has sadly been lacking in recent years.

“With secure investment come the good quality, sustainable jobs and skills our economy needs as we strive for net zero.”

What are Contracts for Difference?

Contracts for Difference (DfDs) are regular auctions used by the UK government to support the rollout of renewable energy.

Energy providers and developers bid for contracts, which offer a guaranteed price for the electricity they produce, reducing financial risk and is an incentive to invest in green energy.