Contracts for Difference: Allocation Round 6 Results

Ed Miliband Excerpts

Tuesday 3rd September 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

The sixth contracts for difference auction results have been published today, unlocking 9.6 GW of renewable electricity projects. Among others, contracts will be going to the two largest offshore wind farms in Europe, the world’s largest floating offshore windfarm to date and record numbers of solar projects. These results are over 2.5 times bigger than allocation round 5. These new projects will boost energy independence, secure cheap power for families, and unlock economic growth and jobs for the country.

Following my decision to increase the budget to record levels, just over 130 renewable electricity projects across Great Britain secured contracts—enough to power the equivalent of 11 million homes.

I am delighted to see strong results across a range of renewable electricity technologies. In particular, a record 93 solar PV projects have secured contracts. This is more than the total number of contracts agreed via AR5 across all technologies and represents around a 20% increase in our current installed solar capacity. Solar is one of the cheapest, most readily-deployable energy sources we have at our disposal, and its growth will be vital to meeting our clean power mission.

I am also delighted to confirm we have secured the largest commercial-scale floating offshore wind farm project in the world through AR6—at 400 MW—double the size of current European total installed FLOW capacity. The construction and deployment of this project will deliver valuable lessons that will benefit the wider FLOW industry, and help reinforce Britain’s position as a world leader in both fixed-bottom and floating offshore wind technology. Tidal stream, another emerging technology, has secured a further six project contracts (totalling 28 MW), bringing the UK total for tidal stream power procured to over 100 MW.

After a disastrous outcome for offshore wind in AR5, it is very encouraging to see 4.9 GW of capacity come through in AR6. This includes procuring Europe’s second largest offshore wind project (considering operational projects and projects under construction). I am confident we can continue to build on this promising outcome in future rounds.

I am delighted that the CfD mechanism has delivered competitive prices across the board, with prices significantly below the ceiling prices (ASPs), protecting consumers. Having more renewables like wind and solar in the system will also ensure Britain is less affected by fluctuations in volatile global gas prices.

The lifting of the onshore wind ban, this very successful allocation round 6, and the creation of Great British Energy, all signal the ramping up of our efforts to deliver clean power by 2030 and net zero, moving towards energy independence and protecting families from volatile fossil fuel prices. Going forwards, we will continue to work with investors, developers, and the supply chain to accelerate our mission to become a clean energy superpower.

[HCWS65]