Record UK Solar Auction Boosts Hopes of Reaching Clean-Grid Goal
(Bloomberg) -- The UK government’s latest onshore-wind and solar auction awarded 6.2 gigawatts of capacity, helping it make headway on clean-grid plans that it says will bring down bills.
Contracts were awarded for a record 4.9 gigawatts of solar capacity at £65 a megawatt-hour, a lower price than in the previous round. For onshore wind, 1.3 gigawatts were awarded at £72 a megawatt-hour.
Boosting renewables is a key part of the government’s strategy to achieve a clean power grid by 2030 and solar energy is central to that plan, with 47 gigawatts needed by then. The cost of government support for new generation is ultimately borne by consumers, though Prime Minister Keir Starmer has vowed that investing in renewables will bring bills down in the long term.
“Clean power is the right choice for energy security and to meet rising electricity demand,” the Department for Energy Security and Net Zero said Tuesday in a statement. The latest auction “puts the UK on track for its 2030 clean power target.”
The auction also marked the return of onshore wind in England after the government lifted a de-facto ban on the technology. The 1.3 gigawatts of total onshore wind awarded was higher than that awarded in the previous round.
The 2030 grid target would require at least 27 gigawatts of onshore wind, up from just 15.9 gigawatts at the end of last year, according to industry group Renewable UK.
Offshore wind makes up the bulk of the UK’s renewable capacity. In January, 8.2 gigawatts were awarded for the technology in an auction. Bidders for offshore capacity have only one auction left to contribute to the 2030 targets. But faster development timelines mean onshore projects have two more chances to add capacity, according to developer RWE AG.
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