UK Solar Contract for Difference (CfD) Allocation - Pager Power
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UK Solar Contract for Difference (CfD) Allocation

UK Solar Contract for Difference (CfD) Allocation
October 16, 2023 Andrea Mariano

The results of the fifth round of Contract for Differences (CfDs) were published on the 8th of September (more than a year after the results of the fourth round). Whilst there is bad news for the offshore wind energy sector, there is some good news for the solar industry [1]. Initially the fifth allocation round was planned for 2022, and it is open for installations exceeding 5MW [2].

UK Solar CfD

The Solar Allocation

In the fifth round, a total of 1.9 GW of solar power (56 solar projects) have been allocated at a price $59/MWh, with the largest project planned at a capacity of 57MW. It is expected that all of the projects will be connected to the grid between 2025 and 2028. 

It should however be noted that during the fourth auction in 2022, 2.2 GW of solar capacity was allocated at $55/MWh. During this auction, circa 1.5 GW of wind capacity was awarded at a strike price of £52.29/MWh. Notably, this is the first time that the solar sector has surpassed the wind allocation in a UK auction.

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[1] Contracts for Difference (CfD) Allocation Round 5: results, GOV.UK, date: 08/09/2023, accessed on: 13/10/2023.

[2] UK allocates 1.9 GW of solar at $59/MWh, Pilar Sánchez Molina, date: 08/09/2023, accessed on: 13/10/2023.


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