London: 6 January 2025

Record renewables subsidy payments in 2024

Net Zero Watch has revealed that subsidies paid to renewables under the Contracts for Difference (CfD) scheme hit new highs in 2024. The previous record, of just under £2.3 billion, was set in 2020. That figure was surpassed in the last few weeks of the year, and, by the time the full year’s data is available, the total is likely to hit £2.4 billion.

Net Zero Watch director Andrew Montford said:

We are paying out up to £20 million pounds per day under this one subsidy scheme alone, on top of very high market prices. How much more pain does the Government think the public and the economy can take?

The Office for Budget Responsibility is expecting subsidies under several other schemes – the Renewables Obligation Scheme, the Capacity Market, and the Warm Home Discount – to also break records in 2024–25.

Notes for editors

CfD subsidies are a top up on market prices, and were therefore depressed during the energy price crisis.

Current high subsidy levels come on top of market prices that are still relatively high.

Data is sourced from the Low Carbon Contracts Company, which administers the CfD scheme. https://dp.lowcarboncontracts.uk/dataset/actual-cfd-generation-and-avoided-ghg-emissions

Contact

Andrew Montford 07523 350729