Christine Chapter, head of innovation at Regen, explains the importance of an effective CfD scheme as a mechanism to grow the green energy industry
This consultation is a positive signal that the UK’s commitment to net zero is shaping government policy and could be transformational for the renewables industry.
We’ve supported a number of key proposals including bringing back the ‘Pot 1’ auction for onshore wind and solar, introducing offshore wind into a new pot of its own (Pot 3) and establishing floating offshore wind as a separate eligible technology within ‘Pot 2’. However, we do not support the proposed extension to the negative pricing rule as we believe this will discourage investors and hinder new projects.
An effective CfD scheme could become a mechanism to grow the green energy industry, whilst supporting regional and national economic recovery, by helping to create a pipeline of investment as part of an overall net zero industrial strategy. Therefore, we’ve also recommended committing to an annual programme of CfD auctions with transparent capacity and budget caps which align to net zero.
You can read our full response here.