CfD budget increase 'simply not enough'

The UK Government has today announced a £22 million increase in the budget for its upcoming Contracts for Difference auction.

Andrew MacNish Porter, Policy Manager at Scottish Renewables, said:

“The UK Government calls the Contracts for Difference mechanism ‘the lifeblood of our renewables industry’, and while today’s announcement of a budget increase is welcome it still falls far short of what’s needed to ensure the heart of this vital part of the UK’s economy keeps pumping.

“While the sums mentioned may seem large, they are simply not enough to unlock the £50-60 billion capital investment which will be required each year to deliver on the UK’s net zero ambitions through the late 2020s and 2030s and the £1.1 trillion which the Office for Budget Responsibility projects the UK will save by 2050 if it reaches net-zero.

“Going forward, the UK Government must ensure it properly funds the Contracts for Difference mechanism to maximise the deployment of the low-cost, home-grown renewable energy projects we need to end our reliance on expensive imported gas and tackle climate change.”