RenewableUK Cymru today welcomed the results of the first auctions for renewable power held under the Contract for Difference regime.  The regime, instituted by the 2013 Energy Act, gives renewable power developers contracts detailing a set amount – or “strike price” for each megawatt hour (MWh) of power they produce.  Developers are given a guarantee they will receive their price for each MWh for 15 years of operation.

Contracts were awarded to three onshore wind farms – RWE Innogy UK’s Clocaenog Forest and Mynydd y Gwair Wind Farms and Windpower Wales’ Brenig Wind Farm.  Enviroparks Hirwaun Generation Site, which is a gasification and pyrolysis project, was also awarded a contract.  These projects add up to a total of 192MW capacity, which could power up to 114,000 homes.  The strike prices vary between £79.23 and £82.50 per MWh for the onshore wind projects and between £114.39 and £119.89 for the gasification and pyrolysis project.

Commenting on the results of the auctions, Sara Powell-Davies, Communications Manager at RenewableUK Cymru, said:

“These projects could power over 100,000 Welsh homes, as well as create jobs and bring much needed investment to our communities.

“The highly competitive prices achieved during this auction highlight how hard industry has been working to bring costs down.  Onshore wind is one of the cheapest forms of low carbon power and the prices achieved today just highlight the folly it would be to choke this industry.

“The next round of auctions is due to take place in the autumn of 2015.  However, there is still a lot of work to be done to ensure developers remain committed to the UK market and it is vital we have clear leadership and clarity from Government about future allocation rounds and the long term support to enable the continued development of low carbon power at a good price.”