6.8GW of renewable capacity set to be added in the UK due to CfD scheme

6.8GW of renewable capacity set to be added in the UK due to CfD scheme

The government’s main initiative for low-carbon electricity generation has shot up in the last three months of this year, reaching 6.8GW by December and  with a projected 5.6GW running at capacity through 2020 to 2025 under the CfD scheme.


The Contracts for Difference (CfDs) is a UK Government system that offers developers protection from volatile wholesale prices and long lifetimes so they can overcome high upfront costs.


The Department for Business, Energy and Industrial Strategy (BEIS) has announced that the CfD scheme could bring a significantly larger share of renewables to the UK’s grid. The BEIS estimates in its first three months of 2021 operational capacity under this program reached 5.6GW due to an increase in low-cost renewable power projects entering into production stage—a result from new research by Cornwall Insight released today. Announced last year as part of future energy strategy, which aims at reaching 30% electricity generation from gas or other non-renewable sources by 2030 while increasing clean power dependence such as solar and wind; yet. it is unknown how far these goals can be met based on CFO forecasts.


The analysis suggests offshore wind will be the main driver of new capacity installed under this scheme.
Burnham-on-Sea, UK – The big driver of CfD Capacity in Britain is going to come from offshore wind energy over next winter as monthly generation could total between 2.5TWh and 3.0 TWH according a recently released report by Cornwall Insight Group’s Analyst Lee Drummee.


A report by montelnews.com found that these statistics could make up to 10% of Britiain’s electricity in 2021, whereas another report by Cornwall Insight claimed that the Coronavirus induced lockdown knocked electricity demand this year by 13%.


In contrast to this, though, low carbon energy like that of CfDs project rose to a record high of 57.5% as of February of this year, showing that The United Kingdom continues to make progress towards their goal of a high-carbon economy. Wind, solar and bioenergy recorded increases in the last quarter for a total production increase by 20%. At this time fossil fuel is only providing 42% of electricity generation which is an all-time low, while gas provides 40.6% and nuclear 19.3%.

The report suggests that primary energy consumption across the UK on a fuel input basis declined by 11% in the last quarter of 2020. The decline was not isolated to just one region, but saw similar decreases all over as demand for transport fuels fell due to Covid-19 lockdowns which made it impossible to drive anywhere during an eight hour period each day.