The result comes from the fourth round of the Contracts for Difference (CfD) scheme, which offers a fixed price to renewable energy sources in use since 2017.
According to the Department for Business, Energy & Industrial Strategy (BEIS), CfDs “incentivize investment in renewable energy by providing project developers with high initial costs and longevity with immediate protection against volatile wholesale prices.”
They added, “They protect consumers from paying higher support costs when electricity prices are high.”
The latest CfD auction round, which closed this month, yielded nearly 11 gigawatts of clean energy, nearly double what was achieved in the previous round.
This energy will come from a range of clean technologies, including onshore and offshore wind, solar and — for the first time — floating offshore wind and tidal current.
This, BEIS said, will help “increase UK energy security and independence with cleaner, more affordable and diverse energy created in the UK.”
The largest capacity, nearly 7 gigawatts, is secured in the form of new offshore wind projects around the UK coasts – enough to increase the UK’s total built and under construction capacity by 35 per cent.
This is an important step towards meeting the government’s target of 50 gigawatts of offshore wind energy by 2030, and will help solidify the UK’s role as a global leader in renewable energy and create new highly skilled jobs.
Minister of Affairs and Energy, Kwasi Kwarteng, said: “Surprising gas prices are hitting consumers across Europe.
“The cheaper, cleaner power we generate within our own borders, the better protected we will be from volatile gas prices that push up bills.
“Thanks to today’s record renewable energy auction, we’ve won nearly 11 gigawatts of clean, home-grown electricity – which would provide the same amount of power as about six gas-fired power plants.
“These energy projects already have a building permit, now they have a financing contract. Would go [get] these projects were built as quickly as possible to better protect millions of British families against rising costs.”
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According to BEIS, the competitive nature of the CfD scheme continues to exert downward pressure on prices.
In fact, the unit price of offshore wind insured in this round is nearly 70 percent lower than the price reached in the first auction in 2015.
Energy Secretary Greg Hands said: “This fourth round shows that the Government’s Contracts for Difference program continues to be a resounding success.
“Not only has it secured a record capacity of clean electricity, it also ensures that the UK will have a future powered by a resilient and diverse supply of homegrown energy from a wider range of renewable technologies than ever before.” to bring.”
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Melanie Onn, deputy director of RenewableUK, said: “Today’s record-breaking auction results show there is a way to replace unaffordable gas with cheap clean power generated by a wide range of renewable technologies, led by wind, both offshore and onshore.
“Thanks to the rapid construction times of new onshore wind and solar installations, bill payers will start to feel the benefits of today’s auction next year.
“The auction also showed that the UK maintains its position as a global leader in innovative renewable energy technologies such as tidal current and floating wind, both of which will play an increasing role in our clean energy transition to reach our net-zero target. reach.
“We need to make this country the most attractive place to invest in, in close cooperation with the government.
“This is especially important if we want to develop our supply chain in new technologies such as floating wind, tidal current and green hydrogen, in which we can lead the global market and seize the export opportunities this offers.”