Further reforms to the Contracts for Difference scheme for Allocation Round 7
Read the full outcome
Detail of outcome
We have split the government responses to this consultation, to allow legislative changes to be implemented before Allocation Round 7 (AR7) opens this summer.
This initial government response covers those elements requiring legislation and summarises responses to the 11 questions in the consultation on:
- amending the Contract Budget Notices
- enabling Secretary of State to have access to anonymised bid information before setting the final budget
- an amendment to the Clean Industry Bonus payment methodology to ensure the energy price cap is accurate
We will publish a final government response here before AR7 opens, covering all non-legislative reforms.
Detail of feedback received
We received 119 consultation responses from:
- a mixture of companies active in the energy sector (including developers, generators and suppliers)
- trade associations and bodies
- investors
- consultancies
- not-for-profit public campaign groups
- individual members of the public
Original consultation
Consultation description
Contracts for Difference (CfD) scheme is government’s main support mechanism for new low carbon electricity generation projects in Great Britain. The government continuously reviews the CfD scheme to ensure it remains fit-for-purpose as our electricity system evolves and we work towards our net zero ambitions.
This consultation invites views on potential changes for Allocation Round 7 (AR7) (due to open in summer 2025), including:
- a relaxation of CfD eligibility criteria for fixed‑bottom offshore wind projects to permit projects that have not yet obtained full planning consents to participate in near-term allocation rounds
- changes to the information the Secretary of State uses to inform the final budget for fixed‑bottom offshore wind, including greater visibility over sealed bid information
- changes to CfD contract terms that would give longer market certainty once contracts are awarded, including consideration of the merits of increasing the current 15-year CfD term to reduce overall project costs
- implementing agreed policy changes and routine changes.
The document also provides policy updates.
We welcome responses from anyone with an interest in the proposals, including those considering participating in AR7 and future CfD rounds.
Documents
Updates to this page
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Published initial government response covering elements requiring legislation. We will publish a second final government response before Allocation Round 7 (AR7) opens.
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First published.