Government has been warned that its current plan for this year’s round of auctions for contracts to generate clean power (CfD) will not maximise investment in wind, solar and tidal projects.

RenewableUK’s economics and markets manager Michael Chesser said: “Unfortunately, in the light of global inflationary pressures, the budget and parameters set for this year’s CfD auction are currently too low and too tight to unlock all the potential investment in wind, solar and tidal stream projects which the industry could deliver.”

In part this a part of the bigger picture, where the US has already acted fast by creating its Inflation Reduction Act with subsidies for green power, and even the EU has at least started talking about doing something. “At a time when the US and EU are bending over backwards to offer incentives for renewable energy developers to come to them to build new projects, the UK is sending the wrong investment signals. As a result, we risk losing vital opportunities to scale up our supply chains around the UK, denying communities the industrial-scale benefits which our sector offers. We’re also jeopardising our global lead in cutting-edge clean energy technologies like floating wind and tidal stream,” Chesser added.

RenewableUK is calling for the Government to revise the CfD budget.

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