Recurrent Energy, a subsidiary of Canadian Solar Inc. (“Canadian Solar” or the “Company”) (NASDAQ: CSIQ), and a global developer, owner and operator of solar and energy storage assets, today announced that it was awarded Contracts for Difference (CfD) for three of its renewable energy projects in the UK totaling 120 MWp.
The Low Carbon Contracts Company, on behalf of the UK Government, has awarded Recurrent Energy with CfD contracts for three solar PV projects in England: Gateley Moor, with an installed capacity of 49.9 MWp, located in Durham; Court Barton, 20 MWp in Devon; and Hessay, with 49.9 MWp in York. Recurrent Energy has signed the contracts for the three projects following the positive outcome.
These projects collectively represent 120 MWp of renewable energy capacity. Together, they will provide affordable, reliable, clean energy to over 34,000 homes and reduce CO2 emissions by approximately 31,000 tons per year. Additionally, they will strengthen supply chains, create local jobs, and make a significant contribution to the UK’s energy security and clean energy targets.
The Court Barton project is expected to reach commercial operation by mid-2025, Gateley Moor by mid-2027, and Hessay by mid-2026.
The contracts awarded will enable Recurrent Energy to secure revenues for 15 years, indexed to inflation, and represents a major step forward in the company’s long-term commitments in the UK’s renewable energy sector.
“We are very pleased with the outcome of the sixth round of Contracts for Difference in the UK”, said Ismael Guerrero, CEO of Recurrent Energy. “The three projects awarded underscore our strong commitment to the UK, which is one of Recurrent Energy’s key markets. We are proud to be among the key supporters of the UK’s journey towards achieving its net zero emissions targets.”
The Contracts for Difference (CfD) scheme, launched in 2014, was designed to support the UK’s transition to Net Zero. At its core, the CfD functions as a contractual mechanism to promote investment in renewable energy projects throughout the UK, while keeping costs low for consumers.
On September 3, 2024, the Department of Energy Security and Net Zero announced the results of the Sixth Allocation Round (AR6), unlocking 9.6 gigawatts (GW) of renewable energy capacity—more than 2.5 times the capacity awarded in the previous round (AR5). This outcome reflects the efforts of the new UK government, which increased the CfD auction budget to over £1.5 billion.
