The UK government has opened the fourth round of the Contracts for Difference (CfD) scheme today, ring-fencing a record-breaking £285m a year to support renewable energy projects across the country.
This round aims to secure 12GW of electricity capacity – more than the previous 3 rounds combined.
According to the government, the additional offshore wind capacity resulting from the funding alone could generate enough electricity to power around 8 million homes.
The funding is open to an expanded number of renewable energy technologies, with offshore wind, onshore wind, solar, tidal and floating offshore wind projects, amongst others, all eligible.
The government hopes that this will encourage the growth of a more resilient energy system and support the UK’s transition to net zero through a greater range of energy sources.
Kwasi Kwarteng, Business and Energy Secretary, said: “Our biggest ever renewables auction opening today will solidify the UK’s role as a world-leader in renewable electricity, while backing new, future-proof industries across the country to create new jobs.
“By generating more renewable energy in the UK, we can ensure greater energy independence by moving away from volatile global fossil fuel prices, all while driving down the cost of new energy.”
Greg Hands, Energy and Climate Change Minister, said: “The CfD scheme is proof that green and growth go hand-in-hand as it continues to be a key driver behind the world-leading renewable energy sector that is providing us with secure clean energy, creating jobs across the UK and opening investment and export opportunities.
“The previous 3 rounds have allowed us to push forward with the Green Industrial Revolution and this round will take us further and faster than ever before while continuing to drive down costs for consumers.”
The CfD fourth allocation round will close to applications on 14 January 2022, with the final results of the auction expected to be announced in spring-summer 2022.
Read next: UK approves 1.8GW Norfolk offshore wind farm
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