Forming part of the governments energy reform plan via the CFD is looking to be the catalyst for the renewable energy boom that is now being predicted by certain groups within the various energy circles. While the government is still has a substantial task at hand to meet their EU targets they do now have a clear plan on how they will look to meet these objectives from a variety of measure which include solar pv panels, renewable heat and also the controversial shale gas.
What Is CFD And How Is It Going To Effect The Eco Energy Market
Contracts for Difference (CFD) is a key element of the “Electricity Reform Programme” (ERF) this is the initiative being led by the government that will look to achieve various renewable energy plans for large scale project to substantially reduce the UK’s dependencies on heavily emitting energy sources. It is such renewed emphasis from the government within such areas as solar thermal renewable heating and other avenues of renewable energy that has led to renewed optimism within the industry which had not long ago been suffering from a large degree of ill feeling from suppliers within the commercial sector due to a lack of government clarity.
Has The CFD Begun To Take Effect
The ERF has now begun to prove fruitful with the first project under the scheme now being approved although a general consensus maybe to be disappointed with only 8 projects being approved when you then realize that these 8 projects amount to over 16TWh in output generation the message is clear that the government is looking to attack it’s targets for solar, renewable heat and overall green electricity like never before.
A 15% Rise In UK Renewable Output
As such these figures can also be reflected further in the amount of emission that are are to be cut from the UK atmosphere by these projects alone which will stand at over 11 MtC02. The DECC has declared the agreeing of these contract as a remarkable step forward by the UK to fulfilling it’s obligations.
Will There Be More Renewable Energy Reforms
This is only the beginning was the clear message from Mr Davey the Climate Change secretary. The reforms laid out by the department are in keeping with the early pledges from the secretary when he took the position that completion had to increase and cut prices be reduced to the government. As such he stated further that the reforms marked a new era of competition that would look to attract billions into renewable projects not just from the usual methods of wind and solar pv power but also towards emerging areas like shale and renewable heat.
Will Green Energy Jobs Be Set To Increase
This is the hope that the CFD will look to spread money across all areas by looking to be open multiple projects in the same location given that they are able to meet certain conditions. Given the department is now claiming that they are expecting to provide over 25% in renewable energy sources from solar panels, wind, hydro and renewable heat by 2020 and thus the CFD will be able to facilitate this to happen.
Some previous related articles of interest:
Just How investment continues in solar pv
How large scale solar projects are set to continue
Solar energy storage a sign of things to come