The Contracts for Difference (CfD) scheme is the government's primary method of supporting low-carbon electricity. It encourages investment in renewables by providing projects with a stable income while protecting consumers from paying increased support costs when electricity prices are high.
Twelve new renewable energy projects have been unveiled, which are set to provide power for over seven million homes at record low prices. They will provide around 6GW of capacity – 2.4GW more than the last round.
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The costs of offshore wind are now around 30% lower than the second auction held in 2017, with projects now being delivered for as low as £39.65/MWh.
These improvements are part of the government's work to reach net zero emissions by 2050.
Prime Minister Boris Johnson said: "The UK is leading the way in the fight against climate change, and it's great news that millions more homes will be powered by clean energy at record low prices.
"Seizing the opportunities of clean energy not only helps to protect our planet, but will also back businesses and boost jobs across the UK."
Energy and Clean Growth Minister Kwasi Kwarteng added: "Offshore wind is a British success story, with new projects at record low prices creating new opportunities for jobs and economic growth as we leave the EU.
"The support we're announcing today will mean that over 7 million more homes will be powered by renewable energy as we decarbonise our energy system – crucial as we continue on the road to net zero emissions by 2050."
(CM/MH)
