Opportunities open up for green tech
The biggest ever renewable energy support scheme has launched in the UK, with some £285M a year in funding being made available for low-carbon technology.
The fourth round of the Contracts for Difference (CfD) scheme opened in mid-December and aims to secure 12GW of electricity capacity – more than the past three rounds combined – moving the UK further away from fossil fuels.
Additional offshore wind capacity has already seen some of the funding ringfenced, with £200M a year going towards wind farms designed to generate enough electricity to power some eight million UK homes. A further £4M has been initially allocated for floating offshore wind and £20M for tidal projects – with solar and onshore wind included for the first time since 2015.
Investment for the future
Building the next generation of green energy projects will ensure we have a more secure and resilient energy system, supporting the UK’s transition to net zero through offering a greater range of energy sources. The scheme has already been successful in driving the uptake of renewable energy across the country, while also rapidly reducing costs. For example, the price per unit of offshore wind has fallen 65% since the first CfD scheme.
Business and Energy Secretary Kwasi Kwarteng said: “Our biggest ever renewables auction opening today will solidify the UK’s role as a world leader in renewable electricity, while backing new, future-proof industries across the country to create new jobs.
“By generating more renewable energy in the UK, we can ensure greater energy independence by moving away from volatile global fossil fuel prices, all while driving down the cost of new energy.”
Opportunities for emerging technology
A total budget of £285M a year has been allocated to the fourth CfD round, with funding available for offshore wind; emerging technologies, such as remote island wind, tidal stream and floating offshore wind; and established technologies, such as solar and onshore wind.
By ringfencing funding for emerging technologies, the Government will support the development of new, innovative technologies that can make an important contribution to the UK’s decarbonisation commitments. The investment in tidal power will kickstart a brand-new chapter for the industry that will also have the benefit of creating new jobs across the UK.
Energy and Climate Change Minister Greg Hands commented: “The Contracts for Difference scheme is proof that green and growth go hand-in-hand as it continues to be a key driver behind the world-leading renewable energy sector that is providing us with secure clean energy, creating jobs across the UK and opening investment and export opportunities.”
There has also been a strengthening of the supply chain planning process, so the CfD’s fourth round can support the effective development of open and competitive supply chains and promote innovation and skills in the low-carbon electricity generation sector.
The Contracts for Difference fourth allocation round will close to applications on 14 January 2022, with the final results of the auction expected to be announced in spring-summer 2022.
Bid for new opportunities
With the Government committed to ensuring fully a third of public procurement spending goes to SMEs, there has never been a better time for innovative companies to gain support in bringing their solutions to market.
Tracker can help you find opportunities in new marketplaces with our tailored contract searches. With the allocation of the above funding, there are sure to be many contracts coming on-stream for innovative companies able to drive new technologies.
Tracker can also help you plan your growth strategy. As we’ve discussed, opportunities for innovations in green technology and improving the credentials of the supply chain are now readily available.
Find your opportunities to tender with Tracker. Contact us for a free trial and/or demo now!