Source · Select Committees · Business and Trade Committee
Recommendation 8
8
Deferred
Paragraph: 47
Review Contracts for Difference Allocation Round 5 parameters to reflect rising costs for renewables developers.
Recommendation
There is a risk that the Government has not accurately reflected rising costs for renewables developers in the budget for this year’s Contracts for Difference auction, putting the viability of future projects into question. We recommend that the Government reviews the parameters set for its Contracts for Difference Allocation Round 5 to ensure that they accurately reflect the cost pressures facing the sector.
Government Response Summary
The government's response discusses the important role of onshore wind in achieving net zero targets and the reasons against setting a UK-wide target for its deployment. This completely deflects from the recommendation to review Contracts for Difference Allocation Round 5 parameters to accurately reflect rising costs for renewables developers.
Paragraph Reference:
47
Government Response
Deferred
HM Government
Deferred
28. While reaching net zero means that electricity demand is likely to double by 2050 as other sectors are electrified, there is no single optimal technology mix to meet this demand. The Government considers that onshore wind has an important role to play in achieving net zero targets and will promote and incentivise deployment across the UK. Owing to the nature of its impacts, the Government considers the need to allow for flexibility across the UK in a way that allows countries and communities to absorb deployment of onshore wind as supported by them. Setting a UK-wide target would potentially undermine the flexibility needed.