CCC responds to Government announcement of renewable energy auctions

23 July 2018

The Government today announced that it will hold auctions in 2019 for the supply of renewable energy, and then every two years. This is in line with recommendations from the Committee on Climate Change in its 2018 Progress Report to Parliament. Regular auctions for low-carbon power in the 2020s are required to achieve cost-effective decarbonisation of electricity generation in the UK. The Committee welcomes today’s announcement, while restating the need for a route to market for onshore wind, beyond remote island providers.

Lord Deben, chairman of the Committee on Climate Change, said: “We welcome the Government’s announcement of a pipeline of future Contracts-for-Difference auctions for low-carbon power and the ambition to support the build of 1 to 2 GW of offshore wind capacity each year, which is broadly in line with the CCC power sector scenarios for cost-effective decarbonisation. Moreover, the announced pipeline of future auctions will help provide the clarity required to build investor confidence and robust supply chains whilst keeping costs to a minimum. However, while supporting today’s announcement, the Committee is clear that Government should also provide a route to market for onshore wind, beyond remote island providers. Onshore wind is the cheapest form of electricity generation, support for which would be likely to lower consumer bills in the 2020s.”

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