Carbon CreditsIn green energy push, the UK plans to hold annual renewables auctions

In green energy push, the UK plans to hold annual renewables auctions



In a green energy push, the UK plans to have renewables auctions every year to support low-carbon electricity. Currently, the UK has them every two years.

The UK believes this change is the best way to stop volatile gas prices. Also, it will give firms investing in wind and solar energy an incentive to keep doing so.

According to Energy Secretary Kwasi Kwarteng, “We are hitting the accelerator on domestic electricity production to boost energy security, attract private investment and create jobs in our industrial heartlands.”

Kwarteng went on to say, “The more clean, cheap, and secure power we generate at home, the less exposed we will be to expensive gas prices set by international markets.”

Renewables Auctions can help the UK meet net-zero emissions goals.

The UK wants to meet net-zero emissions by 2050.

So, in addition to their Emissions Trading System (ETS), the UK must do more.

To hit targets, the UK must quadruple its installation rate. This is no easy feat. But, renewables auctions are a way to do just that.

Investments include onshore wind, solar, floating wind, green hydrogen, and marine power.

According to Morag Watson, director of policy at Scottish Renewables, “By 2050, electricity demand will have almost doubled, and the vast majority of that electricity must come from renewable sources if we are to meet net-zero [emissions].

However, some in the UK do not approve. They believe the UK should produce its own gas by fracking to prevent price increases.

Where did renewables auctions come from? Are they effective?

Renewables auctions were developed by an unknown UK civil servant. They have helped to drive down the price of wind by 65% in the UK.

Renewables auctions have also saved billions of pounds globally.

As such, these auctions have been copied around the globe.

Most Popular



LATEST CARBON NEWS

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

Core Power to Drive Net-Zero Shipping with Mass-Produced Floating Nuclear Power Plants

Core Power, the UK nuclear technology firm, has recently launched the Liberty Programme to transform the maritime sector with advanced nuclear technology. This "US-anchored"...

Carbon Credits Surge: $16B Fuels 2024’s Race for High-Quality Offsets

Carbon credits are increasingly essential for investors and businesses aiming to reduce emissions. According to Abatable’s latest report, the voluntary carbon market (VCM) is...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...
CARBON INVESTOR EDUCATION

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...

Is the Voluntary Carbon Market Dead?

The Voluntary Carbon Market (VCM) has been a vital tool for combating climate change, enabling organizations to offset emissions by funding projects that reduce...