RenewableUK today commented on the results of the first auctions for renewable power held under the Contract for Difference regime.
Commenting on the results of the auctions, RenewableUK Chief Executive Maria McCaffery said: “ We are pleased to see these projects, which between them could power over 1.2 million homes, and create substantial numbers of jobs, and much needed investment in our communities, moving forward.
“The highly competitive prices achieved during this Auction, highlight the fact that the industry has been working hard to bring costs down, both onshore and offshore. The prices achieved by the onshore industry show what utter folly it would be to choke off this low cost form of low carbon power and the results also demonstrate that the offshore industry, provided the conditions are maintained, is well on the path to achieving its stated aim of £100/MWh by 2020.v
“However, there remains a lot of work to be done to ensure that developers remain committed to the UK market, bringing forward much needed power, and economic benefits.”
The next round of auctions is due to take place in the autumn of 2015, and Ms McCaffery warned that all political parties aiming to be in Government needed to consider how these should function.
“It is vital that the new Government moves quickly to clarify process around the next awards. A level of certainty about both immediate future allocation rounds, but also the long term vision of decarbonised electricity, and the support needed for it, will ensure projects keep coming forward, at the right price. The industry has really extended itself today on the cost reduction agenda, and Government needs to respond positively with a clear signal about future rounds and long term support, to enable the continued development of low carbon power at a good price,” McCaffery said.