Contracts for Difference

Any developers bidding to construct solar plants with more than 300 MW of generation capacity in the latest round of the UK’s clean power auction program will have to draw up a supply chain plan showing how they will address matters ranging from skills gaps to new technology to modern slavery.

A conference about the UK’s electricity market showed organizations are considering the future of the country’s energy sector and how to achieve a net zero economy.

Last year’s figures marked the first time the market saw sustained, subsidy-free growth across residential, commercial and utility scale projects, according to trade body Solar Energy UK.

With solar readmitted to the process for subsidizing new renewable energy generation capacity, the government says it is “hitting the accelerator” on clean power as it aims for a fully decarbonized electricity system by 2035.

Competitive bidding for onshore solar and wind will establish a clean-power strike price acceptable to successful developers under the contracts-for-difference approach. The incentive scheme is also applicable to biogas, biomass, landfill gas, hydropower, concentrated solar power, and geothermal plants.

The lack of an incentive regime for battery projects and the like – whether a fixed feed-in tariff or market-driven contracts-for-difference program – is likely to see the COP26 host miss its 100%-clean-power-by-2035 commitment, according to K2 Management.

A report published today states the British grid needs to become more flexible at a faster pace to stay on track for a net-zero 2050 and called for time-of-use electricity tariffs and for the government to stop dragging its heels on issues such as EV charging.

Solar Energy UK today called on the government to provide it with the same kind of support that has been extended to offshore wind companies.

Buyer Equinor could be in for a pleasant surprise – its assessment Wento boasts a 1 GW solar project pipeline in the nation significantly under-reports the 1.6 GW claimed by private equity fund seller Enterprise Investors.

The €400 million, three-year scheme will guarantee price stability for developers while limiting costs to the Danish treasury and applies to on and offshore wind, wave power and hydro, as well as solar.