The government released a consultation on a series of planned changes to its Contracts for Difference (CfD) scheme on 15 December. The reforms included a new proposed definition for remote island wind energy, enabling remote island wind projects to apply for a CfD in the next competitive auction. Views were also sought on proposals to increase the efficiency requirements for Combined Heat and Power (CHP) and Advanced Conversion Technologies (ACT).

The government’s Budget revealed there will be no new low-carbon levies until the weight of current costs has fallen, which it forecast would occur in 2025. Effectively, this rules out new low-carbon spending for the moment and has disappointed the renewables industry. In contrast, the business community has welcomed greater clarity on the UK’s carbon price, which will remain at the same level, and recognition that businesses are facing cost pressures from the UK’s electricity prices.

The government published its Clean Growth Strategy on 12 October, unveiling plans to decarbonise all sectors of the UK economy and meet the fifth carbon budget. It included curbing emissions from the power sector which will need to be close to zero by 2050. The strategy set out how low-carbon sources such as renewables and nuclear would need to grow to over 80% of electricity generation, while unabated coal power is phased out.

The government’s latest auction for renewables subsidies saw significant savings delivered across all successful technologies, with the most striking cost reduction coming in offshore wind. New offshore wind will be delivered for as little as £57.50/MWh from 2022-23 – a fall of more than 50% since the first auction held back in 2015.

The government has confirmed the sale of the Green Investment Bank (GIB) to investment bank Macquarie has been completed in a £2.3bn deal.

The government has announced that energy intensive industries (EIIs) will be made exempt from the indirect costs of the Renewables Obligation scheme.