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Contracts for Difference and Onshore Wind Bill [HL]

Updated: Nov 16, 2023

Wind turbines near St. Neots, Engladn. Image via flickr: Tommy Clark
Wind turbines near St. Neots, England. Image via flickr: Tommy Clark

This Bill was introduced by Baroness Hayman on 30 January 2020. A date is yet to be set for second reading — when the Bill is first debated. The purpose of the Bill is to ensure that the Government holds ‘contract for difference’ auctions for onshore wind projects at least every two years, and to make provisions for planning applications

Contract for difference auctions are held so private companies can bid for renewable electricity production at a set price. This protects them from market volatility and ensures that renewable energy is competitive. If electricity falls before the price that is bid on, the Government will top up the rest. This encourages capital investment in renewable energy, and in this case on shore wind, and has the long term effect of reducing the cost of renewable technologies.

If this Bill is successful it will help the UK cut down on one if its most polluting industries, energy production, by allowing more wind farms to be built. This is crucial if we are half our emissions in the next decade and meet net zero by 2050.


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