CfD Budget increase, power sector auction. Tidal and floating wind energy
The United Kingdom increased the CfD budget for less-established technologies in its annual power sector auction from a level equivalent to around USD 45 million to more than USD 340 million, including some ringfenced budget for tidal and floating wind energy. Contracts for Difference (CfD) scheme is the government’s main method for encouraging investment in low-carbon power. CfD contracts pay the difference between open and close of a trade, allowing traders to take advantage of price movements and avoid physical delivery of the asset. As a result, a large floating wind project was able to secure a 15-year CfD at a price 2.3 times higher than standard offshore wind projects.
The UK government will ringfence GBP 20 million per year in tidal power, with the double aim to strengthen energy security and create jobs across the UK. This investment will be made through the government’s main method for encouraging investment in low-carbon power, Contracts for Difference (CfD) scheme. CfD contracts pay the difference between open and close of a trade, allowing traders to take advantage of price movements and avoid physical delivery of the asset.
The UK government will ringfence GBP 20 million per year in tidal power, with the double aim to strengthen energy security and create jobs across the UK. This investment will be made through the government’s main method for encouraging investment in low-carbon power, Contracts for Difference (CfD) scheme. CfD contracts pay the difference between open and close of a trade, allowing traders to take advantage of price movements and avoid physical delivery of the asset.
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