Consultation outcome

Contracts for Difference (CfD): proposed amendments to the scheme

This consultation has concluded

Download the full outcome

Combined Heat and Power (CHP): impact assessment

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Remote island wind: impact assessment

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Detail of outcome

This is Part A of the government response to the consultation seeking views on a range of proposed changes to the Contracts for Difference (CfD) scheme. This initial response sets out the government’s decisions on:

  • creating a new definition of ‘remote island wind’ and associated qualifying requirements to enable this technology compete in future CfD allocation rounds
  • tightening efficiency requirements for new Combined Heat and Power (CHP) plants
  • a minor adjustment to the definition of waste used in the CfD scheme

These changes to the CfD scheme are being made through the ‘Contracts for Difference (Miscellaneous Amendments) Regulations 2018’, which are laid in Parliament. Impact assessments relating to the remote island wind and CHP changes are published alongside this government response.

The government will publish a further response later this year setting out its position on the wider range of proposals. The government also intends to consult at the same time on the proposed CfD contract amendments that some of the proposed changes require, as well as seeking views on additional detailed contract changes to ensure that the contract terms remain effective.

Detail of feedback received

We received 89 individual responses from a range of stakeholders, including:

  • renewable electricity developers
  • trade associations
  • local authorities
  • members of the public

We also received around 1,400 similar campaign responses expressing views on aspects of the government’s biomass policy and our proposals relating to CHP efficiency requirements.

Original consultation

Summary

Proposals for changes to the Contracts for Difference (CfD) scheme to enable it to continue to support new generation and provide best value for bill payers in coming years.

This consultation ran from
to

Consultation description

We’re seeking views on proposed amendments the Contracts for Difference (CfD) scheme, which provides support for new low carbon electricity generation projects, to enable it to continue to support new generation and provide best value for bill payers in coming years.

Government aims to support the development of onshore wind projects on remote islands, where they benefit local communities. This consultation sets out a proposed definition of remote islands wind, as a new technology that can compete in future auctions for ‘less established’ technologies. An impact assessment is published regarding this proposal.

The responses to the Call for Evidence on fuelled technologies in the CfD scheme, published in November 2016, have informed the development of a number of policy changes relating to fuelled technologies. This consultation proposes:

  • refinements in relation to Advanced Conversion Technologies, to ensure that only more innovative and efficient plants are awarded subsidy
  • changes to the overall efficiency requirements for Combined Heat and Power, to ensure that CfD supported plants are of a suitably high overall efficiency;an impact assessment is being published regarding this proposal
  • updated greenhouse gas emissions criteria that new projects using solid and gaseous biomass as feedstock will have to comply with

The consultation also makes new proposals to facilitate more accurate forecasting of budget spend, and invites views on various other potential changes to the detailed terms of new CfD contracts.

As part of this consultation, stakeholder engagement events were held in Glasgow, Cardiff and London. The questions raised and points of clarification on the proposed changes are answered in the Stakeholder Q&A.

Documents

Contracts for Difference for renewable electricity generation: proposed amendments to the scheme

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Classifying remote island wind as a separate technology in the Contracts for Difference (CfD) scheme: impact assessment

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Changes to Combined Heat and Power Quality Assurance (CHPQA) under the Contracts for Difference (CfD) scheme: impact assessment

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Contracts for Difference stakeholder Q&A

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Published 15 December 2017
Last updated 6 June 2018 + show all updates
  1. Government response to the first part of the consultation published.
  2. A stakeholder Q&A has been added, covering questions raised at stakeholder events relating to this consultation.
  3. First published.