UK Government Extends Clean Energy Contracts, Seeks Renewable Capacity Expansion

Reform UK has issued a warning to major British wind and solar developers, including Octopus Energy and SSE Renewables, threatening to revoke their access to the government's Contracts for Difference (CfD) subsidy scheme if the party gains power. Deputy leader Richard Tice criticized the CfD program, which guarantees fixed electricity prices to protect developers from market volatility, and warned companies against entering bids in the latest allocation round (AR7), citing significant political and financial risks. In contrast, the British government has recently reformed the CfD scheme to accelerate renewable energy deployment by extending contract lengths from 15 to 20 years and revising auction budget procedures to allow better capacity planning and value for consumers. These reforms support the UK's commitment to fully decarbonize its power system by 2035, aiming to increase offshore wind capacity to up to 50 GW and double onshore wind capacity by 2030. Liberal Democrat leader Sir Ed Davey has advocated for a rapid transition of all green energy projects to the CfD scheme, countering claims by political opponents that challenge the net zero agenda. The political debate reflects a broader contention over the future of clean energy subsidies in the UK amid ambitious decarbonization goals.