UK Energy Minister Richard Harrington has confirmed that the government will make up to £557 million available to fund less-established renewable energy projects, including offshore wind, tidal, and wave initiatives.
As part of the government’s Clean Growth Strategy, developers will compete for for funding in Contracts for Difference (CfD) auctions.
Under this scheme, clean energy projects are offered a minimum price at which they can sell electricity and developers bid for contracts.
The next CfD auction is planned for spring 2019, though it has not been confirmed how much funding will be made available.
The results of the most recent CfD auction were released last month and saw the cost of new offshore wind power fall by 50% — making it cheaper than new nuclear power for the first time ever. This auction also resulted in 3 GW of new power generation capable of powering 3.6 million homes.
“We’ve shown beyond doubt that renewable energy projects are an effective way to cut our emissions, while creating thousands of good jobs and attracting billions of pounds worth of investment,” Harrington said in a statement.