Thank you for contacting me about the Contracts for Difference (CfD) scheme.
The CfD scheme has been a key component of the UK’s strategy to achieve net zero carbon emissions by 2050, and the proposed amendments to the scheme further help us to achieve this. I welcome the Government’s willingness to seek a wide range of views on proposed changes to the CfD scheme in its consultation which ran from the beginning of March to the end of May 2020.
It is important to highlight the significance of offshore wind in Britain’s future energy mix, with CfDs having helped to bring about a two-thirds fall in auction prices between 2015 and 2019.
I understand the Government is taking a balanced view of biomass as a long-term renewable solution. It has made clear that coal-to-biomass conversions will be excluded from future CfD auctions. In terms of ‘dedicated biomass’, the Government acknowledges the role that it can play in mitigating against the intermittency of other renewables as part of a full spectrum approach to decarbonisation.
I am proud of the sustained investment which the Government has made into the UK’s thriving renewable energy sector and I hope that the feedback from the consultation, and the subsequent proposed amendments, will strengthen the UK’s ability to support the green industries of the future as we strive to reach net zero.
Thank you again for taking the time to contact me about this important issue.