UK’s CfD auction yields “mixed bag of results,” says REA
The United Downs Deep Geothermal Power Project in the UK. Source: Geothermal Engineering Ltd.
The UK's latest Contracts for Difference (CfD) auction round has seen a mixed bag of results, with the lack of offshore wind projects a notable setback, Mark Sommerfeld of the REA (Association for Renewable Energy and Clean Technology) said in comments on the auction outcome.
The absence of offshore wind bids raises doubts about the government's ability to achieve its target of 50 GW of offshore wind by 2030 and is a “stark reminder” that the government needs to urgently address the declining levels of UK investor confidence, the association’s deputy director of policy added.
However, the REA notes, there was also good news as three deep geothermal projects totalling 12 MW secured CfD funding for the first time. This is seen as an important milestone for the technology which has lacked a route to market despite a number of shovel-ready power and heat projects.
“Record numbers of tidal projects and large amounts of solar and onshore wind are also good news and a reminder that we require a wide variety of technologies to get to net zero,” Sommerfeld further said.
The REA is calling on the government to use the upcoming Autumn Statement to ensure that the next auction addresses increased development costs and the attractiveness of foreign investment markets.
Projects totalling 3.7 GW and led by solar were successful in the latest auction.