2.2 GW of solar effective in UK's newest renewables auction

Jul 8, 2022 04:31 PM ET
  • More than 2GW of solar has actually won agreements in the UK's latest renewables auction clearing at a strike cost of ₤ 53.40/ MWh (US$ 64.19/ MWh).
2.2 GW of solar effective in UK's newest renewables auction
Image: Lightsource BP

The nation's Department for Business, Energy as well as Industrial Technique (BEIS) verified today the results of the fourth allotment round (AR4) of the UK's Contracts for Distinction system, disclosing a total of 66 solar projects totalling 2.2 GW had protected contracts.

The auction's outcomes verified the winning strike rate for solar to be ₤ 45.99/ MWh (US$ 55.30/ MWh), however the auction's rates are based upon prices in 2012 which, when thinking about rising cost of living, imply projects will be paid ₤ 53.40/ MWh-- or ₤ 0.0534/ kWh-- for the ten-year period of the agreement.

Of those contracts, five are to begin creating power within the 2023/24 fiscal year, with the remainder set to begin stream in 2024/25.

The solar projects contracted capacities variety in capacity from 6MW to 112MW. The 112MW contract granted is for Cleve Hillside, a project with an intended capacity of around 350MW that, when full, will certainly come to be the country's largest solar farm.

Chris Hewett, president at nationwide profession body Solar power UK, claimed the auction results concrete solar as a "major part of the remedy to Britain's energy crisis".

"Solar and also wind are now without a doubt the least expensive, in addition to the cleanest, way to power the nation," he claimed.

Programmer JBM Solar was the greatest victor, protecting 320MW of agreements, while other notable winners consist of utility ScottishPower and Lightsource bp, which safeguarded 288MW and 130MW specifically.

Finlay Colville, head of market research at PV Tech publisher Solar Media, described the auction results as a "large positive for the UK sector".

"The results possibly much exceed anyone's expectations, and also will certainly use a variety of programmers and also financiers safety and security to proceed with build over the following few years. As well as the risk cost-free suggestion of the champions in the CfD auction will certainly also give a buffer for some of the other projects under development that call for more work and an alternate methods of funding through PPAs," he claimed.

In complete and also throughout all modern technologies, CfD AR4 will certainly sustain 11GW of renewables coming onstream in the UK, with offshore wind securing the bulk-- some 7GW-- of capacity at a cost of ₤ 37.35/ MWh (₤ 43.37/ MWh including inflation).

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