Responding to the Government’s publication of parameters for the next Contracts for Difference (CfD) auction (AR7), Energy UK’s Director of Policy & Advocacy, Adam Berman said:
“Allocation Round 7 (AR7) has the potential to be transformative for both the UK’s energy system and its economy. It is an investment in the future of our energy security, ensuring that households and businesses across the country can benefit from stable energy prices for decades to come.
“AR6 attracted at least £20 billion in private sector investment. AR7 is expected to crowd in even higher levels of inward investment, ensuring growth across parts of the UK that have for too long been left behind.
“Whilst construction costs have increased over recent years, this has also been felt across major infrastructure projects in other sectors. This is the case for gas fired power plants, as it is for wind turbines.
“Renewables continue to offer excellent value for money. The CfD process remains the best tool for procuring clean energy at lowest cost for customers, driving down prices, and fostering innovation in project development. It enables investment in large-scale, long-term projects despite a historically volatile wholesale market, while also protecting billpayers, by ensuring that developers make neither big losses nor excess profits once offshore windfarms start operating.”
For more detail on AR7, see our explainer from last month: https://www.energy-uk.org.uk/publications/energy-uk-explains-allocation-round-7