The UK government has announced the results of its latest renewable energy auction, originally planned for 2022. It was accessible to installations exceeding 5 MW in size, with 56 solar projects securing 15-year contracts-for-difference (CfDs).
The UK Department of Business, Energy and Industrial Strategy (BEIS) has announced the results of its latest renewable energy auction, originally planned for 2022.
Around 56 solar projects with a total capacity of 1,927.68 MW secured 15-year CfDs at a final price of GBP 47 (€58.64)/MWh. The auction also awarded 1,480.74 MW of onshore wind capacity and 223.6 MW of remote island wind at GBP 52.29/MWh, with a total of 29 wind projects securing contracts. Notably, this marked the first time that solar capacity surpassed wind in a UK auction.
Several companies – including Sonnedix, RWE, Opdenergy, and Lightsource – won contracts for solar projects, with the largest one being 57 MW. These arrays will need to connect to the grid between 2025 and 2028. During the previous auction in July 2022, 2.2 GW of solar capacity was allocated at $55/MWh.
Under the CfD bidding rules, clean power generators participate in auctions to determine a strike price that defines their income from selling electricity. When market prices fall below the strike price, the government covers the difference, while generators retain the surplus when market prices exceed the strike price, later reimbursing the excess to the government.
This post appeared first on PV Magazine.