The UK Government has announced a budget exceeding £1bn for the contracts for difference (CfD) allocation round 6 (AR6) for renewable energy projects.

This is the largest budget allocation for a single CfD auction to date, and aims to support a range of renewable energy technologies.

The upcoming auction, the sixth of its kind, is scheduled to open for bids on 27 March 2024.

The AR6 budget notice outlines the allocation of funds across different technology groups, described as pots.

Established technologies such as solar and onshore wind, categorised as pot 1, will be allocated £120m, while £105m will be earmarked for emerging technologies including floating offshore wind and geothermal (pot 2).