The government’s bidding window has opened for UK renewable funding in the form of the Renewables Allocation Round 6 or AR6 auction.

Successful bidders will secure CfDs totaling £1.5 billion. A CfD or Contract for Difference is a legal agreement that lays out the rights and obligations of specified parties.

In this case, the CfDs relate to UK government investment for clean energy projects. This is to be the sixth year of the renewable energy auction with an allocation each year.

Of the £1.5 billion in total funding money, £1.1 billion will be for offshore wind, £270 million for emerging tech (e.g. tidal power) and £185 million for more commonplace renewables like solar and wind.

Renewable energy developers may now submit sealed bids to the National Grid ESO. The auction window will close on August 9th with the winners likely announced on September 3rd or 4th.

Between receiving bids and the results being announced, the National Grid ESO will undertake an allocation process and independent audit. They will then send their recommendations to the Department of Energy along with an audit report.

The government is eyeing a nationwide energy transformation with the goal of 100% clean and affordable electricity by 2030. The AR6 auction represents one step up towards this target with the allocation seeing a £500 million increase over the fifth auction in 2023.