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DECC announces increase in CfD budget

£25 million in extra funding seen as a boost to electricity market reform in the UK

The Renewable Energy Association welcomes DECC’s confirmation today that £25 million of extra funding will be made available for ‘less established’ technologies bidding in the first CfD allocation round. Technologies will compete for contracts via two categories through an auction process which opens tomorrow (29 January) and closes 4th February 2015.

This is very different to other schemes such as the Renewables Obligation and Feed-in Tariffs, for which support is not subject to competitive auctions.

While the immediate priority is a successful first auction process, the Renewable Energy Association has expressed specific and consistent concerns regarding the CfD policy and these need to be addressed by the next Government.
“We welcome an increase in the CfD budget, and await with interest the outcome of the first allocation round," said REA policy analyst Frank Gordon. "However, there remain concerns around CfD policy  particularly for independent generators and other established and cost effective technologies such as solar and biomass which must be addressed by the next Government following the election.” 

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Energy efficiency  •  Energy infrastructure  •  Policy, investment and markets  •  Solar electricity  •  Wind power