Contracts for Difference and Onshore Wind Bill [HL]
Official Summary
A Bill to make provision about the allocation of contracts for difference; resume the allocation of contracts for difference to onshore wind projects; and make provision about planning applications for onshore wind installations.
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Overview
This bill aims to boost onshore wind energy in the UK by regularly holding auctions for contracts for difference (CfDs), a government support scheme for renewable energy projects, and revising national planning guidance to make it easier to approve new onshore wind farms and upgrades to existing ones. The aim is to help the UK meet its carbon reduction targets.
Description
The bill mandates the Secretary of State to hold regular auctions (at least every two years) for contracts for difference (CfDs) for renewable energy projects until the Committee on Climate Change confirms the UK is on track to meet its carbon reduction targets. These auctions will include onshore wind projects. The bill also requires the Secretary of State to update national planning guidelines to allow local planning authorities to approve new onshore wind projects, projects on previously unused sites, and upgrades to existing wind farms, all to contribute to the UK's carbon reduction goals. The specific planning guidelines to be updated include the National Planning Policy Framework and associated guidance.
Government Spending
The bill doesn't directly specify a government spending figure. However, the cost will be associated with the CfD scheme, which involves the government paying the difference between the agreed strike price and the market price of electricity generated from successful renewable energy projects. The exact cost will depend on the number and size of projects awarded CfDs. The long term impact on government spending is expected to be positive from a reduced carbon footprint.
Groups Affected
Renewable energy companies: Will likely benefit from increased opportunities to develop onshore wind projects through the regular CfD auctions and the changes in planning guidelines.
Local communities: May experience both benefits (e.g., jobs, local investment) and potential drawbacks (e.g., visual impact, noise) from new onshore wind farms.
Local planning authorities: Will have revised guidance to consider when evaluating planning applications for onshore wind projects.
Taxpayers: May see increased or decreased spending based on the overall cost of the CfD scheme and the reduction in carbon taxes.
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