UNITED KINGDOM: Six onshore wind and solar projects relinquish AR4 and AR5 CfD contracts
Projects with CfD contracts totalling nearly 500 MW won in previous rounds of the UK low-carbon incentives framework have had their tariffs terminated, according to data publish by the scheme’s administrator.
The state-owned Low Carbon Contracts Company (LCCC), in the latest update of its CfD register, has confirmed that the six projects relinquished the contracts in late March 2025.
Water utility Severn Trentis the owner of three of the developments – the 25 MW Church Farm, the 26 MW Atherstone Hill and the 49.9 MW High Cayton solar projects.
Both Church Farm and Atherstone Hill received their tariff allocations in the fifth auction round (AR5) held in 2023, with GBP 47 per MWh contracts (in 2012 prices) now worth GBP 67.34 per MWh, according to the LCCC.
Meanwhile, High Cayton’s GBP 45.99 per MWh allocation round four (AR4) CfD is now worth GBP 65.89 per MWh in today’s money.
Severn Trent was previously believed to be aiming to bring the first of the trio online during 2025 and wrapped up a deal to acquire the portfolio from developer Elgin Energy in 2024 in a bid to grow and diversify its burgeoning renewable energy portfolio. A question remains as to what route-to-market the group will now employ.
SSE’s 100.8 MW Bhlaraidh Extension wind farm in Scotland has also been withdrawn from its CfD. The project was successful in allocation round five and was awarded a 2012 strike price of GBP 52.29 per MWh, now worth GBP 75.47 per MWh after indexation, although the project economics are understood to be difficult for the sponsor.
A spokesperson from SSE Renewables stated: “Following a robust governance process, we have reluctantly decided to delay taking a final investment decision on our Bhlaraidh Extension onshore wind project, in what continues to be a challenging economic landscape for the onshore wind industry as a whole. As part of this process, our AR5 CfD contract for Bhlaraidh Extension has been terminated with the Low Carbon Contracts Company.
“Working closely with stakeholders, we are committed to explore opportunities to unlock current challenges for Bhlaraidh Extension, alongside revisiting the project design, to work towards a balanced outcome which is in the interests of all stakeholders.”
EDF and ESB’s 200 MW Stornoway onshore wind farm and Coriolis Energy’s 81.6 MW Chirmorie wind farm, awarded tariffs in AR4, are also understood to have dropped out of the incentives framework. Stornoway was a recipient of a GBP 46.39 per MWh CfD (GBP 59.98 per MWh in current prices) under the so-called remote island wind pot, while Chirmorie won a GBP 42.47 per MWh deal (GBP 54.48 per MWh after indexation).
The termination of the six CfDs follow a similar batch falling out of the framework in early 2024, with those wind and solar projects all former winners in AR4. Project economics that had turned to the negative in the months after the CfD auction were identified by several developers as a key driver in their decisions.
All the developers of the projects terminating CfDs in 2025 were contacted for comment.
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