After running the most successful allocation round in history last September, the government has today given the green light for necessary reforms to expand the auction so more clean energy projects can bid for contracts at competitive prices.
Changes will help the government deliver on its clean power by 2030 mission, bolstering energy security and protecting British families from volatile global gas prices.
Energy Secretary Ed Miliband said, “We need to go further and faster to make Britain a clean energy superpower, end our reliance on volatile global gas prices and make working people better off with homegrown power we control.
“These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs – all part of the mission to bring bills down for good through our Plan for Change.”
This reforms include:
- Increasing the length of contracts from 15 years to 20 years for offshore wind, onshore wind and solar projects – this will help spread out the delivery costs of clean energy projects over a longer period time, lowering scheme costs for consumers in the medium-term. It will also boost investor confidence, with longer contracts meaning project certainty, backing industry in the face of unstable global headwinds.
- Allowing advanced fixed-bottom offshore wind projects to apply for a contract whilst awaiting full planning consent – accelerating delivery times for critical offshore wind projects and increasing competition to deliver a better price for consumers.
- Changing the way budgets are set and published – allowing the Energy Secretary to view developer bids ahead of setting the final budget. This will allow for more certainty on how much capacity is procured, ensuring the budget prioritises value for money for consumers whilst delivering an ambitious auction round.
