The UK Government has reportedly announced the opening of the fourth, and the biggest, round of Contracts for Difference (CfD) scheme, a support scheme for low-carbon energy generation technologies.
According to reports, the government would now be accepting applications, offering £285 million ($377 million) per year in funding for developing the next generation of green energy projects for the nation.
Renewable energy project developers would be able to place bids to secure funding under the new round of the CfD scheme, aimed at securing 12 gigawatts (GW) of electricity capacity. It is expected that the additional offshore wind capacity from the funding will generate enough electricity to provide for almost 8 million households.
As per reports, unlike the previous rounds, the fourth round would also be open to an additional variety of renewable energy technologies, wherein onshore wind, offshore wind, floating offshore wind, tidal, and solar would also be eligible for bidding.
This has been done to ensure that the country has a more secure and resilient energy system, and also to support the UK’s transition to net zero with a wide range of energy sources.
The budget allocated to the fourth round is a total of £285 million ($377 million) per year, with £200 million ($265 million) for offshore wind, £75 million ($99 million) for various emerging technologies such as floating offshore wind, remote island wind, and tidal stream, and £10 million ($13 million) for established technologies like solar and onshore wind.
Further, under emerging technologies, £24 million ($31 million) have been set aside for floating offshore wind projects, while to show the government’s support in new and innovative technologies, £20 million ($26 million) have been reserved for tidal stream projects.
Solar and onshore wind projects have been included for the first time in allocation rounds since 2015, with the government seeking major capacity from them to achieve the required levels of deployment to meet UK’s climate change targets.
It is expected that the fourth round will play a huge role in helping the UK reach its goal of having 40 GW of offshore wind by 2030 as per the Ten Point Plan for a Green Industrial Revolution.