Government reforms Contracts for Difference ahead of AR7: comment

"The Contracts for Difference scheme has been largely responsible for the huge growth in the UK's offshore wind market over the past decade, making it the second largest in the world. Building more renewables to replace older gas plants lowers our reliance on gas increasingly imported from abroad as the North Sea continues its inevitable decline, which is a boost to our energy independence. 
 
"More clarity over arrangements for this years auction will likely help to max out the capacity secured to ensure we limit the gas we need to buy from volatile international markets, reducing the amount of time that gas sets the price for all power generation, which is at 97% at the moment. Plus, changing the way the artificial 'budget' is set will likely mean that more British wind and solar is generated once it's built, stabilising bills as the generators receive a fixed price. 
 
"We have paid the price for our reliance on gas over the last few years of the gas crisis, with the Energy Crisis Commission finding that a rapid rollout of renewables would help limit the impacts of a future crisis on households and industry alike." [2] 

Notes to editors:

1. https://www.gov.uk/government/consultations/further-reforms-to-the-contracts-for-difference-scheme-for-allocation-round-7 

2. https://energycrisiscommission.uk/ 

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net