Commenting on the results of the Contracts for Difference (CfD) Allocation Round 7 (AR7) published today, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“Today’s record number of onshore wind and solar contracts represent a big step towards a clean power system in Great Britain. Clearing prices of £72.24/MWh for onshore wind and solar at £65.23/MWh [in 2024 prices] are higher than the record lows reached in Auction Round 4 (AR4) in 2022, reflecting changed macroeconomic conditions and supply chain pressures."
“AR7 seems to have revealed a “new normal” for the cost of large-scale onshore renewables, and we can no longer bank on prices continuing to fall. Despite this, onshore wind and solar remain the cheapest large-scale renewables available to meet the 2030 target, with prices well below the costs of offshore wind, new build gas or new nuclear.”
-ENDS-
Notes to editors:
For media enquiries, please contact:
Claire Barratt, Deputy Head of Media Relations
T: +44 (0)7923 439264
KPMG UK media relations
Tel: +44 (0) 207 694 8773
About KPMG in the UK:
KPMG is trusted to make the difference for our clients, people and the communities we work in. With our people’s deep sector expertise and cutting-edge technology, we help organisations overcome their biggest challenges and unlock new opportunities to transform and grow.
On 1 October 2024, KPMG UK and KPMG Switzerland merged to form KPMG UK/Swiss Group, scaling our strengths and amplifying the difference we make.
KPMG International Limited is a global organisation of independent professional services firms providing Audit, Tax and Advisory services in 138 countries and territories. Each KPMG firm is a legally distinct and separate entity and describes itself as such.