A record number of clean energy projects have been funded by the UK government’s flagship renewable energy scheme, marking an important milestone for the renewable energy industry.

This achievement marks a key moment in the UK’s journey towards a sustainable, net-zero emissions future. Not only does it boost the economy, it also insulates households and businesses from fluctuations in global natural gas prices while bolstering energy security.

A total of 95 clean energy projects have been approved in the latest round of annual Contracts for Difference (CfD) tenders, surpassing the 93 successful projects in the previous round. The government has allocated a huge budget of £227 million for this round of projects, which will enable the projects to generate enough electricity to power around 2 million homes.

Solar and onshore wind projects lead the way

Solar panel and onshore wind projects accounted for a significant share of funded projects, once again proving their important status as pillars of the UK’s clean energy sector.

It is worth noting that the number of tidal energy projects funded this round has also reached a record high, which bodes well for the future of this emerging renewable energy source. In addition, geothermal projects that use underground natural heat sources to generate electricity have also successfully debuted in the CFD program, which is a pioneering initiative.

Since its launch in 2014, the CFD scheme has played a key role in providing guaranteed electricity prices for renewable energy projects. This financial guarantee injects confidence into companies to invest in the UK renewable energy industry and promotes the steady development of this industry.

The contracts are awarded through competitive tendering, with the project with the lowest price being awarded the green light. This approach ensures consumers get value for money while maintaining a competitive environment that drives innovation. Notably, this year’s tender is structured to avoid newer, less mature energy sources competing with established technologies for budget allocations. This strategic decision ensures certainty for developers and puts the UK at the forefront of the renewable energy industry.

Energy and Climate Change Secretary Graham Stuart said: "We are delighted to see a record number of solar system, onshore wind, tidal and, for the first time, geothermal projects in our first annual CFD tender."

"Offshore wind is at the heart of our ambition to decarbonise our electricity supply and our target of 50GW of offshore wind capacity by 2030, including up to 5GW of floating wind, remains resolute. The UK installed 300 new turbines last year and we will work with industry Collaborate to ensure we remain a global leader in this important technology area."

"This year's record round of CFD funding builds on years of growth in renewable energy under this Government. In 2010, just 7% of the UK's electricity came from renewables, but in the first quarter of this year, this proportion has That’s 48%. This first annual tender will enable us to go further in delivering more electricity to the UK.”