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<p>Renewable deployment has been a huge success in the UK and renewable generation
has more than quadrupled since 2010, totalling 37% of electricity generation in 2019
(source: Digest of UK Energy Statistics 2020). Our continued support has seen the
cost of renewable technologies fall – the cost of offshore wind, for example, has
fallen by more than two thirds since 2015.</p><p> </p><p>The Government has committed
up to £557 million for future Contracts for Difference auctions, with the next allocation
round due to take place later this year. We continue to evolve the Contracts for Difference
scheme and have recently engaged with industry through a call for evidence, looking
at how to balance enabling deployment with minimising system costs and, therefore,
costs to consumers. This will be used to inform the design of future allocation rounds.</p><p>
</p><p>The costs incurred by renewable energy projects when connecting to the grid
are a matter for Ofgem, as the independent regulator. As part of its Access and Forward-Looking
Charges Review, Ofgem is considering some relevant aspects of grid charges, and it
plans to consult on reform proposals in 2021.</p>
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