Renewable Energy: Finance
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of contract for difference projects that have recently been cancelled due to increasing cost pressures; and whether he plans to reform the contract for difference scheme given increased volatility in global inflation.
Answered by Michael Shanks
We recognise the effect that globally high inflation and supply chain constraints are having on industry and we will work with Orsted to get Hornsea 4 back on track.
We have a strong pipeline of projects, and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets. The Government has consulted on reforms to the CfD scheme, with the aim of moving towards energy independence and protecting against volatile global fossil fuel prices. A full response to the consultation will be published before AR7 opens in the summer.
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