CfD Allocation Round 3 Results clear at record prices

On 20 September BEIS announced the results of the Contracts for Difference Allocation Round 3. The auction results cleared at record low prices with 2023-24 delivery year prices at £39.65/MWh and 2024-25 prices at £41.61/MWh (2012 money).

Overall, two advanced conversion technology projects, six offshore wind projects and four remote island wind projects were awarded contracts. 5.77GW of capacity was awarded to the 12 projects, with remote island wind winning contracts for the first time. Successful offshore wind projects included the 12MW Forthwind demonstration project.

Low clearing prices, which were below the auction’s wholesale reference price levels, meant that the auction was cleared through the 6GW capacity cap in place, as effectively budgetary constraints had no impact.

Energy and Clean Growth Minister Kwasi Kwarteng said: “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 7mn 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.”

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