London — Britain secured a record amount of solar power in an auction offering guaranteed electricity price contracts to renewable projects, the government said on Tuesday, as it seeks to meet its clean energy targets and drive down costs.
The country has a target to largely decarbonise its electricity sector by 2030, which will require a huge scale-up of renewable power, including wind and solar.
A total of 6.2 gigawatts of onshore wind, solar and tidal power projects won contracts with the bulk, some 4.9 GW, going to solar.
“By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families, businesses, and our country from the fossil fuel roller coaster,” Energy Secretary Ed Miliband said in a statement.
Through the auctions, usually held annually, the government invites renewable project developers to bid for government-backed price guarantees for the electricity produced, called Contracts for Difference (CfDs).
When wholesale electricity prices are lower than the minimum, the government covers the difference, and if they go above, producers pay back the difference to the government.
This was the seventh such auction and Last month the government announced a record amount of offshore wind was also secured.
ENOUGH ELECTRICITY TO POWER 16 MILLION HOMES
Together, the seventh auction has secured a total of 14.7 GW of capacity, enough to power around 16 million homes, the government said.
The electricity price contracts, or strike prices, for onshore wind were 72.24 pounds per megawatt hour (MWh) in 2024 prices, while solar projects were awarded 65.23 pounds/MWh, which the government said was significantly cheaper than building new gas-fired power plants.
Some 157 solar projects secured contracts including EDF’s Cressing Solar Farm and RWE’s Clachaig Glen project.
Reporting By Susanna Twidale; Editing by Joe Bavier and Susan Fenton – Reuters
