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United Kingdom

UK confirms CfD subsidies

UK: The UK government's Department for Energy and Climate Change (Decc) has confirmed the budget for Contract for Difference (CfD) will see offshore wind receive more support than onshore projects.

Onshore wind projects will need to compete for CfD contracts
Onshore wind projects will need to compete for CfD contracts

Decc confirmed renewable projects will be divided into two groups: established and less-established technologies.

The former group includes onshore wind projects over 5MW, which will be required to compete for support from CfDs. Less established technologies, such as offshore wind, will receive support.

In December, it was revealed that the government could cut support for onshore wind by up to £5/MWh (EUR 6/MWh) from 2015.

Onshore wind is seen to have achieved cost reductions through research and development. Offshore is considered to have the potential for cost reduction but require investment to provide development.

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