Contracts for Difference (CfD) Allocation Round 4: statutory notices
Final statutory notices required to launch Contracts for Difference Allocation Round 4.
Documents
Details
Budget Revision Notice
The budget for CfD Allocation Round 4 has been revised. The Pot 3 budget has been increased by £10 million, to £210 million.
Budget Notice and accompanying note
The Budget Notice sets out the parameters that apply to CfD Allocation Round 4. Eligible projects will compete for an overall budget of £285 million in delivery years 2023 to 2024 and 2024 to 2025 for Pot 1, and 2025 to 2026 and 2026 to 2027 for Pot 2 and Pot 3. Pot 1 also has a capacity cap of 5GW. This notice was published in draft form on 13 September 2021 and, with the exception of an increase in the budget reflecting an additional minimum for tidal stream, the parameters remain the same.
The accompanying note provides a more detailed explanation of the information in the Budget Notice.
Within page 4 of the Budget Notice, supplementary information is provided to explain an approach that could be used to convert budgets between different price bases. Due to an administrative error, the rebased total budget in 2012 prices in the Budget Notice was misstated. The deflator value to convert between 2012 and current prices in the Budget Notice also did not reflect the latest published data from the ONS. Both of these values have now been corrected on page 4 of the Budget Notice to reflect the latest available and accurate information. Please note that neither revision has an impact on the budgets as set out in 2011 to 2012 prices on pages 2 and 3 of the Budget Notice.
Allocation Round Notice
The Allocation Round Notice confirms the key dates for CfD Allocation Round 4, including a commencement date for the round of 13 December 2021 and a closing date of 14 January 2022.
Please note that 2 typographical errors in the Allocation Round Notice have been corrected, namely: the application closing date of the round is 14 January 2022; and the fourth allocation round applies to eligible generators of Hydro generating stations of the following size: >5MW and <50MW (Pot 1).
Framework Notice
This notice states which Allocation Framework is applicable to CfD Allocation Round 4.
Standard Terms Notice
This notice sets out the figures that must be used by the Low Carbon Contracts Company (LCCC) to complete the appropriate Standard Terms (CfD contract), which is individualised for each successful project.
Counterparty Costs Notice
CfD applicants may apply to the CfD Counterparty (LCCC) to request ‘minor and necessary’ modifications to the CfD contract. This notice sets out the threshold above which the costs likely to be incurred by LCCC as a result of the modification would not be considered ‘minor’. We have set this threshold at £19,000 for CfD Allocation Round 4.
Last updated 20 May 2022 + show all updates
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The budget for CfD Allocation Round 4 has been revised.
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Updated the Budget Notice and Allocation Round Notice. Details in the summary.
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First published.