WALES COULD BENEFIT FROM THE NEW ROUND OF RENEWABLE ENERGY SUPPORT
THE biggest ever round of the UK Government’s flagship renewable energy support scheme opened for applications last week with £285 million a year available across Great Britain, which will help build the next generation of Wales’s green energy projects.
Renewable energy projects in Wales can now bid for funding in the fourth round of the Contracts for Difference (CfD) scheme, which is aiming to secure 12GW of electricity capacity across Great Britain - more renewable capacity than the previous three rounds combined. The additional offshore wind capacity resulting from the funding alone could generate enough electricity equivalent to powering around 8 million homes.
Compared to the previous round, this is open to an expanded number of renewable energy technologies across Wales, with offshore wind, onshore wind, tidal and floating offshore wind projects, amongst others, all eligible to bid for funding in the scheme’s auction process - this will ensure we have a more secure, more resilient energy system and support the UK’s transition to net zero through a greater range of energy sources.
The competitive nature of the CfD scheme has been hugely successful in driving the deployment of renewable energy across Great Britain whilst rapidly reducing costs. The scheme’s design has led to the price per unit of offshore wind to fall by around 65% between the first allocation round in 2015 and the third in 2019.
Within emerging technologies, £24 million a year has been ringfenced for floating offshore wind projects and £20 million initially set aside for tidal stream projects, demonstrating the UK Government’s support for new, innovative technologies.
The £20 million per year support for tidal stream projects represents the biggest investment into tidal power in a generation, kickstarting a brand-new chapter for the tidal industry that could also have the benefit of creating jobs across the UK.
Secretary of State for Wales Simon Hart MP said: “Wales is uniquely placed to take advantage of this funding support.
“We already have a track record of fantastic work in the renewable energy sector.
“Wales has both the natural resources and the expertise to drive this even further.
“I’m incredibly proud that the UK Government is supporting this growing industry which is so vital for our Net Zero ambitions. And this growth means more well-paid and highly-skilled jobs, spreading prosperity and helping to create a modern, green economy in Wales.”
Business and Energy Secretary Kwasi Kwarteng said: “From Cardiff to Colwyn Bay and Abergavenny to Anglesey, the abundance of Wales’s natural resources are helping to safeguard our future by tackling climate change and ensuring we move away from the volatility of global fossil fuel prices.”