Recording of Monday, June 22, 2026 | The smarter E Europe Conferences 2026 | Language: English | Duration: 10:27 .
The UK has established a robust market for renewable energy through the Contract for Difference (CfD) mechanism, which operates on a fixed-price basis with government-determined auction clearing prices. Introduced in 2014, the renewable energy auction system enables separate funding for various technologies, promoting competition and encouraging investment. The market has significantly evolved, particularly with onshore wind and solar energy joining auctions, enhancing their competitive pricing alongside offshore wind. Recent trends reveal a notable decline in costs for renewable technologies, making onshore solar the most affordable electricity generation method. The success of the solar sector is evident with record-breaking auction results, including nearly 5 gigawatts auctioned in 2022. However, challenges such as rising grid connection costs, political uncertainties around contract stability, and the need for finalized connection agreements are impeding project bids. The government is expediting upcoming auctions to bolster renewable deployment, although industry concerns about bidding confidence due to these economic dynamics persist.
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Speaker
Chris Hewett
CEO
Solar Energy UK
United Kingdom
As merchant and PPA revenues decline amid negative price trends and falling capture rates, auctions and Contracts for Difference (CfDs) are regaining strategic importance for large-scale solar and storage projects. CfDs remain the backbone of renewable financing, providing price certainty and lowering capital costs. At the same time, auction models must evolve to incentivize flexibility and prevent grid congestion. New EU rules permit non-price criteria in tenders and other publicprocurement processes in order to strengthen resilience and support EU supply chains. This session examines how auctions and CfDs can secure clean capacity, integrate storage and reinforce Europe's energy security and competitiveness.
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Further Talks of this session:
Speaker
Tobias Biller
Senior Regulatory Affairs Manager
RWE Renewables Europe & Australia GmbH
Germany
Speaker
Victoria Ortega
Analyst, European Power & Renewables, Solar
Wood Mackenzie
United Kingdom
Speaker