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R-UK hails 'competitive' CfD result

UPDATE: REA warns against 'playing politics' following successful round

R-UK hails 'competitive' CfD result image

RenewableUK has hailed the results of the first contracts for difference auction as proof that the industry is bringing down the cost of energy.

Chief Executive Maria McCaffery (pictured) said the strike prices in the first allocation round highlight efforts to increase competitiveness and warned that the hard work of delivery starts now.

She said: “We are pleased to see these projects, which between them could power over 1.2m homes, and create substantial numbers of jobs, and much needed investment in our communities, moving forward.

“The highly competitive prices achieved during this auction highlight the fact that the industry has been working hard to bring costs down, both onshore and offshore.

McCaffery said the prices achieved by the onshore sector "show what utter folly it would be to choke off this low cost form of low carbon power and the results also demonstrate that the offshore industry, provided the conditions are maintained, is well on the path to achieving its stated aim of £100/MWh by 2020".

She warned however that there remains “a lot of work to be done to ensure that developers remain committed to the UK market".

The Renewable Energy Association said it was pleased the first allocation was completed on time but called on the government to produce a stable policy framework for renewables in the coming months and years.

REA chief Executive Dr Nina Skorupska said: "The procurement of significant renewables capacity is beneficial to the UK in terms of meeting our legally binding renewable energy targets in a cost-effective manner, improving energy security and delivering jobs and investment.

"If we have one overarching message to government it would be that industry needs a stable policy framework in the coming years and that energy is too important to play politics with at the coming election.”

Iberdrola’s 714MW East Anglia 1 and Mainstream’s 448MW Neart na Gaoithe offshore farms scooped CfDs in the first allocation round.

Image: RenewableUK

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