The government in the UK has confirmed it is to hold another round of auctions for renewable energy in early 2019.
Energy minister Richard Harrington said up to £557M (US$734M) will be made available for less established renewable electricity projects as part of the government’s Clean Growth Strategy, to drive economic growth and clean up the energy system. The government's Clean Growth Strategy will be published shortly.
As part of the strategy, developers will compete for up to £557 million of funding in contracts for difference auctions.
The latest auction saw the cost of new offshore wind fall by 50% compared to the first auction held in 2015 and resulted in over 3 GW of new generation.
RenewableUK’s chief executive Hugh McNeal said the announcement “secures cheap, home-grown, clean energy for the UK.”
He said the government is helping to build a world-leading offshore wind industry which can power a clean industrial revolution, creating new jobs and attracting billions of new investment.
“Last month we saw a record 50% drop in the cost of offshore wind,” said Mr McNeal. “This amazing cost reduction is a reminder of what innovative industry can deliver when backed by competitive auctions.
“The government’s investment and long-term strategy for offshore wind is delivering great economic benefits all around the country. Now we need the government to show the same level of commitment to our cutting-edge wave and tidal energy industries. Innovative floating offshore wind technology also offers new opportunities. Ministers should send a clear signal that they understand the many ways our island nation can tap the enormous and diverse energy resources in our seas, and export these industries globally.”