Closed consultation

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

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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
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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 2 March 2018 + show all updates
  1. A stakeholder Q&A has been added, covering questions raised at stakeholder events relating to this consultation.
  2. First published.