Proposed amendments to Contracts for Difference for Allocation Round 7 and future rounds
Applies to England, Scotland and Wales
Consultation description
Update: 7 March 2024
We published the Contracts for Difference Allocation Round 6 (AR6) statutory notices yesterday, which was earlier in the month than previous years.
As a result, we are extending the deadline for responses to this consultation to 11:59pm on Monday 11 March. However responses should remain specific to the material in the consultation, rather than reflecting views on the AR6 statutory notices.
The Contracts for Difference (CfD) scheme is the government’s main support mechanism for new low carbon electricity generation projects in Great Britain. We review the scheme continuously 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 changes that would, if implemented, apply to contracts awarded in future allocation rounds. It includes:
- proposals that would be delivered in time for Allocation Round 7 (AR7 - scheduled to open in 2025)
- longer-term considerations on which we would like early views
AR7 proposals
- enabling repowering projects to apply for the CfD in AR7 in limited circumstances, for onshore wind projects
- expanding the phased CfD policy to floating offshore wind projects
- streamlining the appeals process for annual auction rounds
- introducing changes to metering to better enable CfD generators to co-locate with other assets
Considerations for future allocation rounds
- how could the CfD support innovation in floating offshore wind foundation technology as the sector develops?
- how could the CfD support the delivery of improved coordination of offshore transmission infrastructure?
- should CfD indexation be updated to better reflect inflation risks?
We welcome responses from anyone with an interest in the policy area, but the consultation will be of particular interest to:
- those considering developing new renewable energy projects in Great Britain
- businesses involved in low carbon electricity generation supply chains
- electricity traders and suppliers
- businesses operating in the floating offshore wind sector
- consumer and environmental groups with an interest in the electricity sector
Read our consultation privacy notice.
Documents
Last updated 7 March 2024 + show all updates
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Deadline extended to 11 March 2024 (from 7 March).
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First published.