Government investment in tidal power
The UK government will ringfence GBP 20 million per year in tidal power, with the double aim to strengthen energy security and create jobs across the UK. This investment will be made through the government’s main method for encouraging investment in low-carbon power, Contracts for Difference (CfD) scheme. CfD contracts pay the difference between open and close of a trade, allowing traders to take advantage of price movements and avoid physical delivery of the asset.
The fourth round of the Contracts for Difference Scheme will open on 13 December 2021, and the UK government will launch an auction process with the ambition of supporting up to 12 GW low-carbon electricity capacity. Total allocated government funding is estimated at 285 million GBP per year.
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