Energy Secretary Amber Rudd has announced that the next auction of Contracts for Difference (CfDs) will take place before the end of next year.

During her speech at the Institution of Civil Engineers in London, during which she laid out the Conservative government’s energy policy, Rudd said a further two rounds would take place before 2020.

A spokesman for the Department of Energy & Climate Change (DECC), told the Solar Power Portal website that the first round would focus on “pot two” technologies, such as offshore wind.

He said one of the subsequent round is likely to include “pot one” technologies, such as onshore wind and solar.

Subsidies not part of business model

In her speech, Rudd said: “Subsidies should be temporary, not part of a permanent business model.”

Maf Smith, Deputy Chief Executive at trade body RenewableUK, said: “Onshore wind has already achieved the kind of cost reductions needed to be competitive and is now one of the cheapest sources of home-grown power in the UK.

“If we want to cut emissions and keep bills low, Government needs to show that it won’t stand in the way of subsidy free forms of power, like onshore wind, being able to access our energy market and compete head-to-head with options like nuclear and gas.”

> Read Rudd's speech in full

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