The government has confirmed the results of a £176m renewable power auction this morning, which demonstrates significant cost declines for technologies including Advanced Conversion Technologies (energy-from-waste) and offshore wind.
A number of Advanced Conversion Technology (ACT) projects, which involves the gasification or pyrolysis of waste, secured funding alongside offshore wind and biomass CHP in this “Contracts for Difference” (CfD) auction for “Less Established Technologies.”
The last such auction took place in 2014, with results announced in 2015. As there was no dedicated (or “ringfenced”) funding for wave or tidal projects this round, none secured a contract.
The projects announced today are set to generate 3.3GW of electricity.
Projects are to be delivered across Great Britain from Wales to the Scottish Highlands and the West Midlands from 2021.
Minister for Energy and Industry, Richard Harrington, said: “We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions.
“We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions.”
“The offshore wind sector alone will invest £17.5bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today. This government will continue to seize these opportunities as the world moves towards a low carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan.
“This investment will help the UK meet its climate targets while supporting jobs in Britain’s growing renewable industry. The UK has the largest offshore wind capacity in the world and low carbon businesses have a combined turnover of £43 billion, employing 234,000 people.”
James Court, Head of Policy and External Affairs at the Renewable Energy Association said: “The latest renewables auction show huge price reductions across the board, with offshore wind, energy from waste and biomass clearing at prices from £57.50-£74.75.
“These results show that renewables are now the most cost effective form of any energy generation which can future proof both the UK grid and provide sustainable new jobs in the UK.
“Offshore wind’s success shows what can happen with government support, and consider that this auction was for so called ‘less established’ technologies, with the more mature onshore wind and solar blocked to market. Surely now is the time for the government to commit to a low carbon industrial strategy.”