The Contracts for Difference (CfD) register has been released by the Low Carbon Contracts Company (LCCC), confirming that neither of the two solar projects that won CfD contracts for the next financial year will go ahead.
Head of external affairs Leonie Greene said: “This confirmation shows that what everyone in the industry was saying was right: the £50/MWh bids wouldn’t get built. That no large solar farms will be built in the next year under either the RO or CfDs is a tragedy, as we predicted these types of projects could be cheaper than gas in just 3 years with stable policy support.”
With the RO now closed to >5MW solar farms, and no CfD projects going ahead for the next year, there will only be some large-scale projects built under grace periods for the RO.
This confirmation means that only 60 percent of the solar projects that won will go ahead (3 of 5). This contrasts with the onshore wind sector, where 100 percent of the projects that won were signed (15 of 15).
Greene added: “British solar SMEs are now having to rewrite their business plans, again. For an industry that is predicted to be the dominant global energy source by 2050, the UK’s rollercoaster policies are not helping its position. We hope that the new government looks at this technology with fresh eyes to develop a fairer and more sensible approach.”