- UK has increased the overall budget of the AR5 under its CfD scheme by £22 million
- Of the total £227 million, pot 1 with solar as a participating technology, gets an additional £20 million
- Pot 2’s budget has been raised to £37 million with an increase of £2 million, according to the department
The UK Department for Energy Security and Net Zero has expanded the total budget of the country’s flagship renewable energy support program, pitching in an additional £22 million for Allocation Round 5 (AR5) under the Contracts for Difference (CfD) scheme, saying it sends a ‘powerful signal’ to the industry and increases developer confidence in the sector.
With this additional amount, the total budget of AR5 now stands at £227 million. Pot 1 of established technologies now has a budget of £190 million, up from £170 million previously. Solar PV is competing against hydro, landfill gas, offshore & onshore wind, remote island wind, among others in pot 1.
Budget of pot 2 increases by £2 million to a total of £37 million. The AR5 was launched in March 2023 with a total budget of £205 million, with last date of submissions being April 24, 2023.
Announcing the rationale behind the increase, Energy Security Secretary Grant Shapps explained, “Today’s funding through our flagship Contracts for Difference scheme – the lifeblood of our renewables industry for nearly a decade – will help grow our economy by making Britain the first choice for investors in renewable energy projects and secure skilled jobs for future generations.”
While the results of AR5 are yet to be declared, Head of Markets for the National Grid Electricity System Operator Claire Dykta said, “Following our evaluation of qualifying projects we welcome the Secretary of State’s decision to revise the budget for Allocation Round 5.”
Source from Taiyang News
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