Jakarta, INTI - Britain has secured a record volume of solar power through an auction offering government-backed electricity price contracts for renewable energy projects, the government announced on Tuesday. The move is part of the UK’s strategy to meet clean energy targets and reduce energy costs.
The country aims to largely decarbonize its electricity sector by 2030, which will require a significant expansion of renewable energy capacity, including both wind and solar power.
In total, 6.2 gigawatts of onshore wind, solar, and tidal projects won contracts, with the majority, approximately 4.9 GW, allocated to solar energy.
“By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families, businesses, and our country from the fossil fuel roller coaster,” Energy Secretary Ed Miliband said in a statement.
Through these annual auctions, renewable project developers can bid for Contracts for Difference (CfDs), government-guaranteed electricity prices. When wholesale electricity prices fall below the agreed minimum, the government covers the shortfall; if prices rise above it, producers pay back the difference.
This was the seventh such auction, following last month’s announcement of a record amount of offshore wind capacity also secured.
Record Capacity to Power Millions of Homes
The seventh auction has brought a total of 14.7 GW of renewable capacity under contract, sufficient to power approximately 16 million homes. The strike prices for onshore wind were set at £72.24 per megawatt-hour (MWh) based on 2024 prices, while solar projects received £65.23/MWh, which the government noted is significantly cheaper than building new gas-fired power plants.
Some 157 solar projects were awarded contracts, including EDF’s Cressing Solar Farm and RWE’s Clachaig Glen project.
Conclusion
The UK’s latest renewable energy auction marks a major milestone in its clean energy transition. By securing record solar capacity alongside onshore wind, the government not only strengthens energy security but also drives down costs for households and businesses. With a total of 14.7 GW contracted, enough to power 16 million homes, the initiative underscores the country’s commitment to decarbonizing its electricity sector and fostering a sustainable, low-carbon energy future.
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