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<p>The Government recognises that achieving our 2050 net zero target will require
increased deployment across a range of renewable technologies. The UK's main support
mechanism is the Contracts for Difference Scheme (CfD), which has been hugely successful
at bringing forward large-scale renewable generation at low costs to the consumer.</p><p>
</p><p>Power Purchase Agreements (PPAs) can improve the financial viability of renewable
projects built without Government support. PPAs of this nature do not add to consumer
levy costs, have the potential to create additional renewable generation capacity
and can reduce overall demands on the grid if meeting the needs of large energy users.
All routes to deploy cost effective low carbon generation are welcome and given our
highly ambitious carbon budget and net zero targets, we anticipate that PPAs will
be an important part of the landscape to complement Government mechanisms such as
the CfD.</p>
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