The UK Government has announced significant reforms to its primary clean energy promotion scheme, aiming to expedite the development of renewable energy projects across the nation.

The Contracts for Difference (CfD) scheme, which facilitates annual auctions for clean energy subsidies, will now offer extended contract durations and revised budget-setting mechanisms under the revised scheme.

Offshore wind is central to Britain's strategy to decarbonise its electricity sector by 2030, with a target to expand capacity from the current 15 gigawatts (GW) to between 43GW and 50GW by the end of the decade.

Despite the ambitious goals, a government report from November 2024 highlighted the challenges in achieving them.

Under the revamped CfD scheme, contract terms for offshore wind, onshore wind, and solar projects are intended to be increased from 15 to 20 years.

This change is designed to distribute costs over a more extended period for consumers while providing increased certainty for investors.

The UK believes that the longer contract terms will facilitate the development of more clean power projects and support job creation.

In addition to extending contract lengths, the reforms will allow the energy minister to review developer bids before finalising the auction budget, according to Reuters. This approach aims to procure capacity more accurately and ensure consumers receive better value for money.

UK Energy Secretary Ed Miliband was quoted by the news agency as saying: “These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs.”

Furthermore, the government plans to bolster private investments in the UK's clean energy sector to over £30bn annually by 2035, as outlined in the comprehensive Clean Energy Industries Sector Plan.

This plan involves collaboration between industry, trade unions, and workers from various regions, reflecting the government's commitment to a clean energy economy.