Jul 16, 2025
Britain revamps energy program to speed up clean energy initiatives.
On Tuesday, the British government revised its main initiative for promoting clean energy projects by extending contract durations and altering auction budget settings to expedite the deployment of renewable energy.
Offshore wind is central to the UK's strategy to decarbonize its electricity sector by 2030, aiming to increase capacity from about 15 gigawatts to 43-50 gigawatts by the decade's end, though a November government report indicated challenges in achieving this target.
The Contracts for Difference scheme is the primary tool for securing clean energy initiatives, holding annual auctions for subsidies that provide a guaranteed minimum price for generated power to encourage investment.
The new regulations will extend contracts for offshore wind, onshore wind, and solar projects from 15 years to 20 years, allowing costs to be spread over a longer period for consumers and offering greater certainty for investors.
Additionally, the process for determining auction budgets will be revised. The energy minister will now review developer bids prior to establishing the final budget, leading to more precise capacity procurement and better value for consumers.
"These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs," stated Energy Secretary Ed Miliband.
Offshore wind is central to the UK's strategy to decarbonize its electricity sector by 2030, aiming to increase capacity from about 15 gigawatts to 43-50 gigawatts by the decade's end, though a November government report indicated challenges in achieving this target.
The Contracts for Difference scheme is the primary tool for securing clean energy initiatives, holding annual auctions for subsidies that provide a guaranteed minimum price for generated power to encourage investment.
The new regulations will extend contracts for offshore wind, onshore wind, and solar projects from 15 years to 20 years, allowing costs to be spread over a longer period for consumers and offering greater certainty for investors.
Additionally, the process for determining auction budgets will be revised. The energy minister will now review developer bids prior to establishing the final budget, leading to more precise capacity procurement and better value for consumers.
"These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs," stated Energy Secretary Ed Miliband.