REA calls for more funding for regular CfD auctions

The government has been told to prioritise more funding for regular Contracts for Difference (CfD) auctions as part of its upcoming stimulus package.

On 2 July, the Renewable Energy Association (REA) outlined key policies that it believes are necessary for the UK to achieve a successful green recovery ahead of Chancellor, Rishi Sunak setting out plans to boost the economy. Along with funding for CfD auctions, the REA also called for low carbon power and heat generation in new homes, retrofitting energy efficiency measures into existing homes, and reforming the tax system to enable the low carbon transition to be implemented into the stimulus package.

According to the REA, these measures alone – creating low carbon homes and reforming the tax system – would create 176,000 new jobs, save consumers £270 on bills annually and generate a net value to the UK economy of £7.5bn. It also called for local authorities to be funded to take actions locally to meet net zero. This could include upgrading local government building estates, such as schools, offices, hospitals and care homes, along with making the transition to a circular economy.

Dr Nina Skorupska, REA Chief Executive, said: “Renewable energy and clean technology have again and again proven to be versatile, secure and economically beneficial – this needs to be acknowledged and reflected in the post-Covid economic recovery. It is no longer enough to support a Net Zero economy in rhetoric alone, we must ensure that renewables are at the core of the recovery if we are to achieve the just and inclusive society the Government has been referring to.”