The UK government has allocated over £1 billion for the sixth round of Contracts for Difference (CfD), the largest-ever funding for the country's flagship renewable energy scheme. Announced during the Spring Budget by the Chancellor, this massive endorsement underscores the government's commitment to fostering investment in the thriving renewable energy sector.

This unprecedented funding includes a record £800 million allocation exclusively for offshore wind energy, demonstrating the UK's commitment to staying at the forefront of technology and leading global offshore wind projects. 

The CfD scheme provides renewable energy projects with a guaranteed price for the electricity they generate, contributing to the increase in renewable electricity generation from 7% in 2010 to over 40% today.

The £800 million allocation for offshore wind aims to support the UK's ambition to achieve up to 50GW of offshore wind by 2030. Additionally, it is expected to generate up to £100 billion in private investment for the country's energy transition by 2030, supporting up to 480,000 jobs.

The Allocation Round 6 budget includes: 

•          £120 million for established technologies such as onshore wind and solar
•          £105 million for emerging technologies such as floating offshore wind and geothermal, including a ringfenced £10 million budget for tidal for a second consecutive year
•          £800 million for offshore wind

CfD contracts are awarded through a series of competitive auctions, which ensure value for money for consumers. This has reduced prices since the first auction and contributed to solar and wind being amongst the cheapest form of electricity generation in the UK. 

Andrew Bowie, Minister for Nuclear and Renewable Energy, said that "This unprecedented budget funding for renewables, worth over £1 billion, will keep the UK at the forefront of the sector". This announcement will give certainty to developers and continue to attract investment to the UK," he said.

"I can't wait to see the opportunities that will open up for our world-class renewable industries, which will reduce emissions and deliver clean, reliable energy to the British people," Bowie said.

Industry leaders have welcomed the news, with Neil McDermot, CEO of Low Carbon Contracts Company, emphasizing the significance of this budget in accelerating the journey to net-zero and ensuring energy security and economic prosperity for the UK.

Dan McGrail, CEO of RenewableUK, also praised the budget increase, highlighting that it will not only secure a significant amount of new offshore wind capacity and private investment but also create thousands of new jobs.

With this historic milestone, the UK reaffirms its commitment to transitioning towards cleaner, sustainable, and economically beneficial energy for the country.