PS Renewables secures 120 megawatts of solar capacity in record-breaking UK renewables auction
PS Renewables is delighted to announce it has secured Contracts for Difference for four solar projects totalling 120 megawatts in the UK Government’s Allocation Round 7a.
The outcome of this latest allocation round was published earlier this week (Tuesday 10 February) and saw 4.9GW of solar capacity awarded in the competitive auction, showing the strength of the solar industry and important role it will play in the UK’s future energy system.
PS Renewables’ successful allocation reflects the strength of its development pipeline and its proven track record in bringing solar projects through planning, construction and into operation. Together, its operational projects already contribute over 400 megawatts of clean electricity to UK homes, businesses, schools and hospitals, with over 7 gigawatts of projects currently in development.
The four projects are located across the country and are expected to start supplying clean, green energy into the UK’s electricity network from 2027.
Jose Luis Gandia, Managing Director of PS Renewables said: ‘Securing 120MW of solar capacity in AR7 is a major milestone in our mission to deliver low-cost, green and secure energy to the UK and displace expensive and polluting fossil fuels. AR7 has demonstrated that solar remains one of the fastest and most cost-effective ways to deliver clean and secure energy at scale. We are proud to be playing our part in the UK’s energy transition.’
According to the Department for Energy Security and Net Zero, new solar projects awarded in AR7 achieved strike prices of £65.23/MWh, highlighting the continued competitiveness of solar compared with new fossil fuel generation. The Government has stated that the capacity secured through AR7 will help reduce exposure to volatile gas prices while unlocking billions of pounds of private investment and supporting jobs across the UK.
PS Renewables will now progress its successful AR7 projects through the next stages of development, working closely with local communities, landowners and stakeholders to ensure projects deliver long-term environmental and economic benefits.
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About PS Renewables
Established in 2012, PS Renewables has rapidly become one of the UK’s largest renewable energy development and construction companies. Alongside an existing solar farm portfolio totalling over 1.35GW, it is one of the UK’s largest developers of solar Nationally Significant Infrastructure Projects (NSIPs), including Longfield Solar Farm, which received consent in 2023, and Sunnica Energy Farm, which received consent in summer 2024.
How CfDs work by Solar Energy UK
The key function of CfDs is to reduce the risk of volatile prices hitting consumers and damaging investor confidence. It thus lowers the cost of capital and in turn energy bills, while the clean generation it secures helps push expensive natural gas off the grid.
The system uses competitive bidding to keep down the cost of support for renewable energy, with operators being paid a fixed amount regardless of the prevailing price for wholesale power. When wholesale electricity prices are below the agreed strike price, operators receive top-up payments from consumers. When wholesale prices exceed the strike price, operators pay the difference back, reducing the ‘policy costs’ applied to bills.
