UK government must accelerate renewable energy rollout, says Scotland’s green energy supply chain

Scottish Renewables joined forces with 67 organisations representing some 20,000 renewable energy jobs to call on the new UK government on 8 July to speed up the rollout of renewable energy projects.

The Contracts for Difference (CfD) scheme is the UK government’s main mechanism for unlocking investment in low-carbon electricity generation. CfDs are awarded through annual auctions known as ‘Allocation Rounds’, with Allocation Round 6 (AR6) due to take place this summer.

Although more than 12 GW of renewable energy projects could participate in the AR6 auction, the current budget, set for March 2024, means that only a small fraction of these projects will be able to secure investment.

Due to inflation and rising interest rates, the AR5 auction did not deliver any offshore wind contracts in 2023. This year, the renewable energy industry expects AR6 to deliver capacity that will help the UK government achieve clean energy targets such as 50GW of offshore wind by 2030.

In a letter to the new Prime Minister, Chancellor of the Exchequer and Secretary of State for Energy Security and Net Zero Emissions, Scottish Renewables has called for an increase in the AR6 budget, which the industry body says will provide certainty for key Scottish projects and supply chains.

Claire Mack, Chief Executive of Scottish Renewables, said:

“The Contracts for Difference (CfD) programme has been a pioneer in driving renewable energy investment in the UK. With key implementation targets just around the corner, we need to maximise capacity in the upcoming CfD allocation rounds.

“Scotland’s renewable energy supply chain is poised to secure opportunities from our impressive pipeline. However, we will only be able to enable the continued deployment of key projects in Scotland if we ensure that CfD budgets match their potential.

“The new UK Government has an immediate opportunity not only to help us get back on track to delivering on our ambitious targets, but also to boost growth and create high-value jobs by increasing the budget for Round 6.

“Maximising Contracts for Difference will also pave the way for cleaner, cheaper and safer energy, which will benefit communities across the UK.”