Solar and tidal included in record 11GW CfD round

Almost 7GW of new offshore wind makes up the bulk of the new CfD, with around 2.2GW of solar, 1GW off onshore wind and 0.6GW of inland wind making up most of the remainder. For the first time ever, floating offshore wind (FLOW) and tidal stream generation are included in a UK CfD, accounting for 32MW and 41MW respectively – relatively low figures that will be expected to increase in future auctions as the technology matures.

What are CfDs?

Overall, the new capacity will generate electricity at a cost around four times lower than the current gas price. Adjusted in line with 2012 prices (around 20 per cent lower than today’s actual prices) in order to aid historical comparison, the new solar capacity in the latest CfD will come in at £46/MWh, with onshore wind at £42/MWh and offshore wind at just £37/MWh.

“Eye-watering gas prices are hitting consumers across Europe,” said business and energy secretary Kwasi Kwarteng. “The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills.