The UK Department for Business, Energy and Industrial Strategy (BEIS) announced that the next Contract for Difference (CfD) auction will take place in spring 2019 and up to £557m will be available for the funding of "less established renewable" energies projects. This next auction fits into the framework of the UK Clean Growth Strategy and the government hopes that this move will drive down energy costs for consumers.
The August 2017 CfD auction saw the cost of offshore wind power fall by 50% compared with the first 2015 auction. The new prices reached a new record in the UK offshore wind industry at £57.50/MWh and £74.75/MWh.
The CfD renewable energies support mechanism has been established back in April 2015. In the last August 2017 auction round, qualified bidders were allowed to apply for 15-year support of their projects, which means they will receive a guaranteed remuneration for the electricity they generate. The produced electricity is then sold on the wholesale market. If the achieved price is below the remuneration awarded in the CfD auction, the difference is reimbursed to the company.
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