UK Allocates 9.6 GW Renewable Energy Contracts in Sixth Round

These projects include onshore, offshore, and floating wind, along with solar and tidal

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The United Kingdom has allocated Contracts for Difference (CfDs) to 131 new renewable energy projects, securing a substantial 9,648.26 MW of clean energy capacity in its sixth allocation round. This marks a significant increase from the 95 projects awarded CfDs in the previous round.

The awarded projects span a range of renewable energy sources, including onshore, offshore, and floating wind, solar, and tidal energy.

Solar projects with capacities greater than 5 MW totaled 3,288.31 MW at a tariff of £50.07 (~$65.68)/MWh, with allocations of 2,897.36 MW in England, 316.07 MW in Scotland, and 74.88 MW in Wales.

Onshore wind projects exceeding 5 MW capacity accounted for 990.37 MW at a tariff of £50.90 (~$66.77)/MWh, distributed across 8 MW in England, 909.77 MW in Scotland, and 72.6 MW in Wales.

Tidal stream projects contributed 28 MW at a tariff of £172 (~$225.62)/MWh, with 18 MW located in Scotland and 10 MW in Wales.

Floating offshore wind projects totaled 400 MW at a £139.93/MWh tariff, entirely based in Scotland.

Offshore wind projects amounted to 3,363.07 MW at a tariff of £58.87 (~$77.22)/MWh, all allocated in England.

Additionally, offshore wind projects with permitted reductions accounted for 1,578.51 MW at a tariff of £54.23 (~$71.14)/MWh, with 1,238.9 MW in England and 339.61 MW in Scotland.

The strike price for this round was set at £73 (~$93)/MWh for offshore wind, £64 (~$81.5)/MWh for onshore wind, and £61(~$78)/MWh for solar.

The budget for the UK’s sixth renewable energy CfD allocation round was increased by 51.71% to £1.555 billion (~$1.91 billion) from  £1.025 billion (~$1.30 billion) allocated in March 2024. The sixth allocation round will be valid for five years, from financial years 2026 to 2031.

The budget included £1.1 billion (~$1.40 billion) for offshore wind, £185 million (~$235.61 million) for established technologies such as onshore wind and solar, and £270 million (~$343.88 million) for emerging technologies such as floating offshore wind and tidal.

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