The government has unveiled plans to ramp up auctions for its flagship renewables scheme.
Changes include plans to award contracts every year – doubling the previous frequency.
The renewed urgency for the scheme, under Contracts for Difference (CfDs) trading rules, come at a pivotal moment for energy production in the UK and beyond.
Rocketing energy costs are hitting household budgets hard and Russia’s invasion of Ukraine has made matters even worse, further driving up energy prices.
The government Department for Business, Energy and Industrial Strategy says its revised strategy will support renewable electricity producers and boost the UK’s renewable energy infrastructure.
The change kicks in from March 2023 when the next CfD round opens.
A CfD is a contract between a buyer and a seller that stipulates that the buyer must pay the seller the difference between the current value of an asset and its value at contract time.
CfDs are the government’s primary method of supporting renewable energy, driving down the cost of technologies and playing an important role in leveraging £90 billion of private investment by 2030.
The auction scheme has already proved successful at bringing down the per unit price of offshore wind by around 65% since the first auctions were held – helping the UK become one of the world’s largest generators of wind power.
Legal Support for Clean Tech and Renewable Energy
JPP Law can support investors looking to bid for CfDs. At JPP Law we have numerous clients in the sector which include industry providers and innovators, investors and customers. Our team of knowledgeable solicitors have advised companies in the biogas, bio-coal, solar energy and battery technology to name but a few.
