Scottish Renewables has joined forces with 67 organisations, representing roughly 20,000 jobs from throughout the renewable vitality trade, in an enchantment to the brand new UK Authorities to speed up the deployment of renewable vitality initiatives, in an 8 July announcement.
The Contracts for Distinction (CfD) scheme is the UK Authorities’s foremost mechanism for unlocking funding in low-carbon electrical energy technology. CfD contracts are awarded by way of annual auctions often known as ‘Allocation Rounds’, with Allocation Spherical 6 (AR6) set to happen this summer season.
Regardless of greater than 12GW of renewable vitality initiatives with the ability to enter the AR6 public sale the present price range, set in March 2024, signifies that solely a fraction of those initiatives will have the ability to safe funding.
Resulting from inflation and elevated rates of interest the AR5 public sale didn’t ship any contracts for offshore wind in 2023. This yr, the renewable vitality trade is searching for AR6 to ship the capability that may assist the UK Authorities ship its clear vitality targets corresponding to 50GW of offshore wind by 2030.
In a letter to the brand new Prime Minister, Chancellor of Exchequer and Secretary of State for Power Safety and Internet Zero, Scottish Renewables has referred to as for a rise to the AR6 price range that the trade physique says will present certainty to important Scottish initiatives and provide chains.
Claire Mack, Chief Govt at Scottish Renewables, mentioned:
“The Contracts for Distinction (CfD) scheme has been a trailblazer for reinforcing funding in renewable vitality throughout the UK. With key deployment targets across the nook, we should maximise capability within the upcoming CfD allocation rounds.
“Scotland’s renewable vitality provide chain is poised to safe the alternatives from our spectacular pipeline. Nonetheless, we’ll solely have the ability to allow the regular deployment of significant Scottish initiatives by guaranteeing CfD budgets match their potential.
“The brand new UK Authorities has an instantaneous alternative to not solely get us again on observe to fulfill our daring targets, however to kickstart financial development and high-value job creation by uplifting the Allocation Spherical 6 price range.
“Maximising Contracts for Difference will also pave the way for the cleaner, cheaper and more secure energy for the benefit of communities across the UK.”
