In a landmark development for green energy, Wales has secured the largest ever number of renewable projects in a UK Government auction round. A total of 20 schemes have been awarded contracts, representing a significant boost to the nation's clean energy capacity.
Unprecedented Scale of Green Energy Investment
The successful projects, confirmed through the UK Government's latest Contract for Difference (CfD) auction, have a combined capacity to generate more than 530 megawatts of clean electricity. This diverse portfolio includes five onshore wind farms, twelve solar installations, and three tidal energy schemes.
A Contract for Difference provides developers with a guaranteed price for the electricity they generate, ensuring commercial viability while protecting consumers from price spikes through a government clawback mechanism when market prices rise.
Welsh Government Celebrates Major Achievement
First Minister Eluned Morgan expressed delight at the auction results, stating: "I am delighted these projects have been successful in the latest auction round. As well as meeting vital targets to reduce carbon, onshore wind and tidal energy bring major economic benefits and high-quality jobs to Wales."
The Welsh Government has emphasised its commitment to positioning Wales at the forefront of the green energy revolution, with Cabinet Secretary for Economy, Energy and Planning Rebecca Evans highlighting efforts to streamline planning processes for major infrastructure projects.
Breakthrough for Onshore Wind Development
Among the notable projects receiving CfD awards is Bute Energy's 94 megawatt Twyn Hywel Energy Park in Caerphilly, which represents the largest onshore wind farm by capacity awarded in this auction round. The development will feature 14 wind turbines capable of powering approximately 84,000 homes when operational.
Martin Chown, interim chief executive of Bute Energy, described securing the contract as "a landmark moment" for the company, noting that onshore wind remains one of the UK's most cost-effective renewable energy sources.
Tidal Energy Takes Centre Stage
Wales secured an impressive 99.65% of all tidal funding available in the auction, with significant developments including HydroWing Tidal Energy Projects' Ynni'r Lleuad scheme at Morlais off the coast of Anglesey. The project received an additional 10MW award, building on previous allocations to create what will become the world's largest tidal energy project upon completion in 2030.
Richard Parkinson, chief executive of Inyanga Marine Energy Group, emphasised that the latest award enables "focus on economies of scale and drive momentum towards delivering clean and stable power to the grid in Anglesey at an industrial scale."
Industry Response and Future Challenges
Jessica Hooper, director of RenewableUK Cymru, welcomed the breakthrough for onshore wind in Wales after years of stalled progress, but cautioned that significant challenges remain. She highlighted constraints including limited grid capacity, particularly in mid-Wales, and a planning system that has suffered from historical underinvestment.
Despite these challenges, the auction results demonstrate strong appetite from developers, investors, and governments to realise Wales' substantial renewable energy potential, with projects now moving toward the delivery stage and promising substantial economic benefits across local communities.
