The government has confirmed a budget of £205 million for the 2023 Contracts for Difference Scheme as the first annual auction of the year begins to boost Britain's energy security. The latest round in the renewables auction process will receive the full amount of funding to boost energy security of supply, ensure that more of the UK's energy is home-grown and drives the economy forward.
The CfD scheme is a flagship approach to supporting the UK's green energy sector. It has already awarded publicly funded contracts to create 27GW of clean energy projects, all of which have helped the country to move towards its longer-term net zero goal. In the last round, the UK secured nearly 11GW of low-carbon energy capacity, enough to power 12 million homes in the UK.
This is the fifth round of CfD allocations, and the £205 million budget confirms that the government is committed to backing the green industry. This will bolster the sector's investment, attract private investment, create new jobs and help to phase out expensive and polluting fossil fuels.
£170 million has been earmarked for offshore wind and other established green energy technologies, designed to ensure the UK continues to be a global leader in these areas. £10 million has also been allocated to tidal stream energy to help grow this thriving industry.
With 68,000 jobs in the clean energy industry created or supported in the UK for the past three years, the hope is that the funding will help to create downward pressures on energy prices, support the economy, create skilled jobs and get to a point where the UK's wholesale energy market is amongst the cheapest in Europe. Further details of the auction process and eligibility will be released in due course.