The Contracts for Difference scheme (CfD) is the government’s main framework for supporting low-carbon electricity. This framework is designed to incentivise investment in renewable energy to help lower the UK’s carbon footprint.
To date, the CfD has awarded contracts to projects totalling almost 27 GW of low-carbon capacity.
Following the Budget, which took place on Wednesday, 15th March 2023, it was announced that some £205m has been allocated for its latest renewables auction, which is designed to boost energy security, and that, as a country, we produce more of our own clean, renewable energy. Part of this £205m includes £170m for established technologies, including offshore wind and also a £10m budget for tidal stream technology.
Is enough being done?
Whilst the government have been touting this as a great leap forward for renewable energy in the UK, some are denouncing the various plans since the unveiling of the 2023 Budget. Some campaigners state these plans are not going far enough to reach Net Zero carbon goals.
A number of campaigners were disappointed to see after the Budget was presented, there was no hint of the anticipated help for home insulation, which is seen as being key in driving down carbon emissions from domestic heating, nor was there any strengthening of the windfall tax on the huge oil and gas profits or the removal of the barriers to onshore windfarms.
Luke Murphy, associate director for energy and climate at the IPPR thinktank, said: “There is a global race to the top in reaching net zero, and the UK now risks falling seriously behind our competitors. The government needs to learn the lessons from the US and Europe, ramp up public investment, and bring forward a green industrial strategy, safeguarding our economy and environment for the future.”
A freeze on fuel duty, another Budget announcement, has caused a lot of frustration among campaigners that want the UK to move away from fossil fuels as soon as possible. They see this freeze on fuel duty as another delay in reducing the UK’s reliance on polluting fossil fuels.
More information on this will be produced in time.
