The British government has introduced changes to its main scheme for promoting clean energy projects. Among the key reforms, the length of CfD has been extended, and auction budgets have been revised to accelerate the deployment of renewable energy.
Under the new rules, contracts for offshore wind, onshore wind, and solar projects will be extended from 15 to 20 years. According to the government, this longer duration will help spread costs over a longer period for consumers and offer greater certainty to investors. The reforms will also modify how auction budgets are set. The energy minister will now have access to developer bids before determining the final budget. This change aims to enable more accurate capacity planning and deliver better value for money for consumers.
In 2023, the government committed to fully decarbonising the power system by 2035. This pledge includes the development of up to 50 GW of offshore wind capacity by 2030, including 5 GW from floating offshore wind. The country also aims to double its onshore wind capacity by 2030, increasing it from approximately 15 GW to 30 GW.
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