Three Big Wins For UK Renewable Energy In The Last Month

Three Big Wins For UK Renewable Energy In The Last Month

In the last month, a number of announcements have been made that are reshaping the UK’s energy policy, accelerating the transition towards a lower carbon economy and creating a more resilient energy system. In large parts, this shift has been catalyzed by a new Labour Government, which has utilized net zero as a cornerstone policy in its first weeks in office. However, it is not only the actions of the UK government that have created a hotbed of activity in the renewable energy space. In the past month, three key renewable energy announcements have been made:

• Ban on onshore wind has been lifted.
  The Labour Government has lifted the de facto ban on onshore wind developments and committed to doubling Britain’s current onshore wind capacity by 2030. This change in planning policy aims to facilitate the expansion of onshore wind farms, which had been hindered by stringent regulations and local opposition since 2015. By easing these restrictions, the government hopes to accelerate the development of wind energy projects, contributing to its goal of achieving 100% clean power by 2030. Wind has grown to be the UK’s largest source of renewable energy and second-largest source of low-carbon energy – behind just nuclear – accounting for 29.4% of the country’s energy mix in 2023.
  
  
• Contract for Difference (CfD) budget is expected to increase to £1.5 billion.
  The UK is set to increase its Contract for Difference budget to £1.5 billion in an upcoming auction. The CfD scheme has been pivotal in driving energy growth by guaranteeing a fixed price for electricity generated from renewable sources, providing developers with the financial certainty needed to invest in large-scale projects. In September 2023, the UK government failed to draw any bids because the price on offer was too low, resulting in a record £800 million budget at the following auction. This latest news shows an almost 50% uplift from the previous iteration and signifies the Labour government’s stance on clean energy as it attempts to quadruple offshore wind capacity to 55GW by 2030 to reach its clean energy goal.
  
  
• An ‘Electric Superhighway’ between Scotland and England has been approved.
  Regulators have given the green light to a new subsea cable to transport renewable electricity between England and Scotland. This is part of a wider move to modernize and increase the capacity on the energy transmission network so that energy can be moved around the grid on days when the wind doesn’t blow, or demand is high. On the windiest days, UK consumers are currently paying to turn wind turbines off because the grid cannot deal with the levels of electricity being produced. The approval of this project will increase the capacity to move energy around the UK, improve energy security and reduce energy bills in the long term.

These announcements reflect a significant acceleration in the UK’s transition to renewable energy. The decisions underscore a clear political, as well as financial, commitment to decarbonizing the UK’s energy grid and taking steps towards net zero emissions targets. With grid capacity rising and subsidies on renewable energy increasing, this will in turn accelerate the development of renewable energy projects. For organizations, these changes represent an enhanced opportunity for renewable energy procurement and a strong environment for investment in low-carbon energy projects.