Referral of the proposed Contracts for Difference Clean Industry Bonus Allocation Round 8 Scheme by the Department for Energy Security and Net Zero

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Energy Security and Net Zero (DESNZ) concerning its proposed Clean Industry Bonus Allocation Round 8 (the Scheme).

From:
Competition and Markets Authority
Published
18 March 2026
Case type:
SAU referral
Case state:
Open
Market sector:
Energy
Opened:
18 March 2026

Administrative timetable

Date Action
30 April 2026 SAU’s report to be published
31 March 2026 Deadline for receipt of any third-party submissions
18 March 2026 Beginning of reporting period

Request from DESNZ

18 March 2026: The SAU has accepted a request for a report from DESNZ concerning the proposed Scheme. This request relates to a Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the DESNZ Assessment of whether the Scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the Scheme provided by DESNZ

The  Contracts for Difference (CfD) scheme has existed since 2014 and aims to encourage low carbon electricity generation. CfDs are long-term (15-year) contracts between a low carbon electricity generator and the CfD counterparty, the Low Carbon Contracts Company (LCCC). Clean Industry Bonus (CIBs) are an addition to the CfD scheme, this was implemented in Allocation Round 7 (AR7) and will continue in Allocation Round 8 (AR8).

The aim of the CfD CIB scheme is to help de-risk (and so accelerate) the deployment of low carbon electricity generation, specifically offshore wind and floating offshore wind, by addressing supply chain issues that can hinder, or are hindering, the construction of projects. The CfD CIB will provide greater revenue support through the CfD to offshore wind projects that choose to invest in the economic, environmental and social sustainability of offshore wind and floating offshore wind supply chains, thereby addressing some of the supply chain issues identified.

Eligible technologies are floating offshore wind and fixed-bottom offshore wind. CIB support will be awarded following a competitive allocation round, and the highest-scoring bids are accepted until the maximum budget for the allocation round is reached.

The next CIB allocation round is planned to open for applications in 2026.

The criteria for CIB AR8 will be:

  • investment in shortening supply chains, in deprived areas in the UK

  • investment in more sustainable means of production, anywhere in the world (in practice, in firms that have signed up to the Science Based Target Initiative)

Additional requirements for participation include confirmation that the applicant has signed up to the Offshore Wind Fair Work Charter, and confirmation that they will make the agreed investment stated in their Project Level Funding Agreement with the Offshore Wind Industry Council Delivery Body.

The CIB budget will be the maximum amount of subsidy available to developers for each round. The likely budget for AR8 is £150 million, though the budget will be subject to the budget revision process that occurs during the CIB allocation round. There are a variety of factors that determine the precise quantum of the CIB budget ahead of each allocation round, including the need to balance ambition/impact against incentivising competitive tension and protecting consumer value for money.

The indicative CIB budget will be published as soon as practicable (to a minimum of 10 working days) before the CIBs. The Allocation Framework for AR8, as well as the Guidance and application sheet, has been published on GOV.UK.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Contracts for Difference Clean Industry Bonus Allocation Round 8 Scheme, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at SAU-cleanindustrybonusar8@cma.gov.uk, copying the public authority: renewablecibs@energysecurity.gov.uk.  

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with the DESNZ. The SAU will send a copy of your submission to the DESNZ together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme/grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the DESNZ using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts

Updates to this page

Published 18 March 2026
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