The UK Department for Business, Energy & Industrial Strategy has released outline details of the pot capacities and caps for the Contracts for Difference Auction Round 4 to be held in December 2021.
£265 million per year will be provided to businesses in the fourth round of the scheme, which aims to double the renewable electricity capacity secured in the third round and generate more than the previous three rounds combined. The announcement contains £200 million to support offshore wind projects. This will help meet the manifesto commitment to ensure the UK has 40GW of capacity by 2030. There will also be £55 million available for supporting emerging renewable technologies. £24 million of that is ringfenced for floating offshore projects for the first time. For the first time since 2015, established technologies, including onshore wind and solar, will also be able to bid. The Government is seeking up to 5GW of capacity from these technologies, with a £10m budget. This will support investment in all parts of Great Britain, particularly Scotland and Wales. CfD contracts are allocated through a competitive auction process where the cheapest projects in each technology group are awarded contracts first.
