The UK government announced Monday a U-turn plan on onshore wind power, by allowing the technology to compete for contracts in power auctions, Kallanish Energy reports.
The Department for Business, Energy & Industrial Strategy (BEIS) proposed amendments to the Contracts for Difference (CfD) scheme, “so it can continue to support new generation and provide best value for consumers.”
The government is seeking views on the planned changes in a consultation that closes on May 22, 2020. CfDs incentivize investment in renewables by providing project developers with high upfront costs and long lifetimes with direct protection from volatile wholesale prices, BEIS said.
The scheme, which excluded onshore wind power in 2016, also protects consumers from paying increased support costs when electricity prices are high. The next auction round is planned to open in 2021.
Scottish Renewables CEO, Claire Mack, said the government support “does not mean subsidy,” but access to the auctions will enable projects finance and deliver economic benefits across the UK.
“Today’s announcement will give our onshore wind sector the confidence it needs to begin to build out again … with the support of both the government and the public,” Mack said, adding this is the cheapest form of new power generation.
Hugh McNeal, CEO of trade body RenewableUK, said that “the government is pressing ahead with action to meet our net zero emissions target quickly and at lowest cost to consumers and businesses.”
According to the latest government survey, the popularity of onshore wind has grown in recent years to 78%, compared with a 6% opposition.
This post appeared first on Kallanish Energy News.