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 ensuring regular government auctions for Contracts for Difference (CfDs) – essentially long-term price guarantees for renewable energy projects – and making it easier to get planning permission for new and upgraded onshore wind farms.
Description
The bill has two main parts:
Contracts for Difference Auctions
The Secretary of State must hold auctions for CfDs at least every two years. These auctions will be open to all eligible generators concurrently. These auctions will continue until the Committee on Climate Change confirms that the UK's carbon reduction targets are likely to be met, at which point the Secretary of State may continue the auctions based on other factors. The bill defines "allocation round," "contract for difference," and "eligible generator" using existing legislation.
Onshore Wind Planning
The Secretary of State must update national planning guidelines to make it easier to approve new onshore wind projects and upgrades to existing ones. The guidelines will allow local authorities to approve applications for onshore wind farms that: a) contribute to the UK's carbon reduction targets, b) are built on new sites, and c) involve repowering existing installations.
Government Spending
The bill doesn't specify exact figures for government spending. However, it commits the government to holding regular CfD auctions, which will involve substantial financial commitments to support onshore wind energy projects through long-term price guarantees. The extent of this commitment will depend on the number and size of successful bids in each auction round.
Groups Affected
- Renewable Energy Developers: Will benefit from more frequent CfD auctions and potentially easier planning permissions, leading to increased investment in onshore wind projects.
- Local Communities: May experience both benefits (e.g., job creation, investment) and drawbacks (e.g., visual impact, noise) from new or upgraded wind farms near their residences.
- UK Government: Will incur increased costs associated with the CfD subsidy scheme but also potentially benefit from reduced carbon emissions and energy independence.
- Local Planning Authorities: Will face revised planning guidelines influencing their decision-making on onshore wind applications.
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