The UK’s new Industrial Strategy puts clean energy front and centre, with tens of billions in new investment expected across wind, hydrogen and grid infrastructure.
But unless the next two Contract for Difference (CfD) rounds deliver at scale, the opportunity could slip through our fingers, says Angus Widdowson, Head of Generation, SmartestEnergy.
He explains: “The government’s Industrial Strategy rightly recognises the clean energy transition as the economic opportunity of the 21st century, and the next five years will define whether we can realise that opportunity.
“Meeting the Clean Power 2030 target will require the UK to double its current renewable capacity, and that means shifting from ambition to action.
“Contracts for Difference (CfDs) remain the backbone of UK renewable financing, giving developers the price certainty and bankability they need to secure investment.
“But after the setbacks of Allocation Round 5, the next two rounds needed to restore confidence and deliver at scale. AR6 made welcome progress, but unless AR7 clears significant capacity, and quickly, investor hesitation will persist, putting our 2030 goals at risk.
“We’re also seeing the PPA market evolve rapidly. Many generators are now exploring Corporate PPAs and hybrid structures alongside CfDs, especially as clean energy buyers push for greater carbon transparency and price certainty.
“But navigating this new landscape requires stable regulation, long-term signals, and a grid system that enables timely connections for real, deliverable projects across all technologies.
“Grid connection delays, supply chain bottlenecks, lack of infrastructure and policy uncertainty are still major barriers. The Strategy sends the right signals, but delivery demands urgent action to remove these roadblocks and unlock the capital waiting in the wings.”
• Stay informed with SmartestEnergy’s in-depth analysis of the issues at play in the next Green Business Journal, out soon.
