The Government has announced a budget of over £1.5bn for the sixth renewable auction (Contracts for Difference scheme) that provides developers with initial subsidies for clean electricity projects.

The increase, of over 50 per cent on previous budget, will help accelerate the delivery of all renewable energy and give the biggest boost to offshore wind with £1.1bn allocated (more budget than all of the previous auctions combined).

The uplift comes on the day of the first meeting of the Clean Energy Mission Board chaired by the Energy Secretary, with its focus on the 2030 net zero target.

Energy Secretary Ed Miliband said: “This will restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect billpayers, and become a clean energy superpower.”

The Contracts for Difference scheme (CfD) works by guaranteeing a set price for electricity – known as a strike price – that generators receive per unit of power output. This was seen over Winter 2022/2023, when Contracts for Difference payments reduced the amount needed to fund government energy support schemes by around £18 per typical household.

Following the increase, the Allocation Round 6 (AR6) budget includes: £1.1bn for offshore wind, an uplift of £300m, £185m for established technologies such as onshore wind and solar, an uplift of £65m and £270m for emerging technologies such as floating offshore wind and tidal, an uplift of £165m.

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