No large-scale solar for next financial year
Contracts for Difference Register shows no solar projects for 2015/16
The Contracts for Difference (CfD) register has released by the Low Carbon Contracts Company (LCCC), the administrator of the CfD scheme [1]. In this it has been confirmed that neither of the two solar projects that won CfD contracts for the next financial year will go ahead.
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Head of External Affairs Leonie Greene commented:
"This confirmation shows that what everyone in the industry was saying was right: the £50/MWh bids wouldnt 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, it is a struggle for many companies. There will be some large-scale projects built under grace periods for the RO.
This confirmation means that only 60% of the solar projects that won will go ahead (3 of 5). This contrasts with the onshore wind sector, where 100% of the projects that won were signed (15 of 15).
Greene concluded:
"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 UKs 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."
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