Contracts for Difference and Renewable Energy

Thank you for contacting me regarding the Contracts for Difference (CrD) mechanism. 

I am aware that total investment into UK offshore wind, onshore wind and solar PV was £143bn over 2009-2023. For these technologies, a record £19bn was in 2023, helping the renewable share of total UK electricity generation increase from 7 per cent in 2010 to nearly 50 per cent in 2023.

In the UK, renewables receive levy-funded support through legacy schemes and the Government's CfD mechanism. The budget for the sixth CfD allocation round, confirmed by the chancellor at Spring Budget 2024, signals large-scale government backing to drive further investment into the UK's thriving renewables sector and roll out more clean, secure and affordable energy. 

I understand that following an extensive review of the latest evidence, including the impact of global events on supply chains, the Government has allocated a record £800 million for offshore wind, which has been given a separate funding pot. This makes this the largest round yet, with 4 times more budget available to offshore wind than in the previous round. 

This follows the increase in the maximum price for offshore wind and floating offshore wind in November and will ensure Britain remains a global pioneer in wind power, as home to 5 of the world's largest offshore wind farm projects. It will also help to deliver the UK's ambition of up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind. 

The Conservatives are sticking to the plan to deliver the long-term change the UK needs to secure more homegrown, green energy to protect British billpayers from volatile gas prices. 

Thank you again for taking the time to contact me.