UK opens latest offshore wind funding round

Burbo Bank windfarm off Merseyside in northwest England. The UK had about 101 gigawatts of electricity generation capacity in 2020, according to government data. Picture: PA

The UK has opened the largest-ever round of funding for its renewable energy program in a push for low-carbon technology.

The fourth round of the government’s contracts for difference regime aims to secure 12 gigawatts of new electricity capacity, with €334m a year available to new energy projects. That’s more capacity than the previous three rounds combined.

“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,” said  Business and Energy Secretary Kwasi Kwarteng.

The UK had about 101 gigawatts of electricity generation capacity in 2020, according to government data. That means that the new round of contracts alone could increase capacity by around 12%.

The funding round is open to offshore wind, which is allocated €234m of the total pot, as well as onshore wind, solar, tidal and floating offshore wind projects.

Contracts for fifference are a mechanism used to guarantee fixed prices for energy projects to help make them more commercially attractive to developers.

• Bloomberg