Lightsource bp secures 40MW in UK renewables auction

This week, Lightsource bp secured 40MW in the most recent UK Contracts for Difference (CFD) auction. The CFD scheme is one of the tools put in place by the UK Government to advance the nation’s commitment to transforming the energy landscape.

This year was the sixth round of the CFD scheme, which included 3.3GW of solar power capacity being awarded through , state-backed contracts with a duration of 15 years. In total, this round of the CFD awarded 9.6GW of renewable contracts, further demonstrating the UK’s commitment to renewable and sustainable energy sources.

In the UK Government’s ongoing drive to attract investment in renewable energy projects, the CFD serves as an important mechanism. Each winning project is awarded a “strike price”, which this year for solar was £50.07/MWh, and when the power generated by the project is sold for less than that, the UK Government will top up the payments. Conversely, when power prices exceed strike prices, the additional revenue is returned to the authorities. Through this two-way system, CFDs provide developers with a secure route-to-market by offering stable and predictable revenue streams from renewable energy projects.

Declan Keiley, Head of Business Development for UK and Ireland at Lightsource bp, said:

“We’re pleased to see continued success in the UK CFDs with our developed solar projects. These results demonstrate not only the high quality of our projects but also the vital importance of solar as a route to a low-carbon future for the UK. Lightsource bp continues to support the UK’s targets of 50GW of solar by 2030 and net zero by 2050 via our increased investment in securing grid connections to realise new solar and battery projects across the country.”