Renewable energy auction win bolsters UK solar deployment

Lightsource bp has secured 130MW of capacity in the latest UK Contracts for Difference (CFD) auction. The CFDs are the government’s main mechanism for supporting renewable energy projects.

In total, 2GW of solar power capacity was awarded 15-year contracts as part of the latest round of the programme. The fourth allocation round awarded 11GW of renewable power projects with predictable, state-backed contracts.

The three Lightsource bp projects received a ‘strike price’ of £45.99 per Megawatt hour. Where power is sold for less than that, the UK government will top up the payments. Where power prices exceed £45.99, the additional revenue is returned to the authorities.

Kareen Boutonnat, CEO for EMEA and APAC at Lightsource bp said:

“Our winning projects have been planned and designed to exceed industry standards. They underline that competitive prices can be delivered alongside benefits to local biodiversity, whilst being built with the most innovative, proven technologies available and with local communities fully engaged in the process.

“The results demonstrate once again that solar and renewable energy more broadly present the only route to stable, low-cost and low-carbon power,” she added.