Contracts for Difference (CfD) Allocation Round 6: Allocation Framework
The Allocation Framework sets out the rules for Contracts for Difference (CfD) Allocation Round 6 (AR6) and the eligibility requirements applicants must satisfy.
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Allocation Framework for CfD Allocation Round 6
The final Allocation Framework for CfD Allocation Round 6 (AR6) sets out:
- the rules for Allocation Round 6
- the eligibility requirements that applicants must satisfy
Differences from the fifth Allocation Round
The most significant differences from the fifth Allocation Round (AR5) are:
Rule 4 – Supplemental Requirements:
a. New Rule 4.1(e) added:
Applicants for a Private Network CfD Agreement must confirm that they will not supply electricity via a Private Network or directly connected cable to an Offshore Installation [see new definition in Schedule 1], or a person that supplies electricity via a Private Network or directly connected cable to an Offshore Installation. See also related change to Schedule 5 below.
b. New Rule 4.1(f) added:
“The Applicant must confirm that it is aware that it is a contractual obligation that the BM Unit Metered Volume [see new definition in Schedule 1] and, in the case of a Private Network Generator, the Metered Volume [see new definition in Schedule 1] comprises all output electricity generated by the Facility.”
c. New Rule 4.1(g) added:
“The Applicant must confirm that it is aware that an exclusivity agreement granted by Crown Estate Scotland, such as through the Innovation and Targeted Oil and Gas leasing round, does not satisfy Regulation 27(2) of the Contracts for Difference (Allocation) Regulations 2014.” See also related change to Schedule 5 below.
Please note that the wording of this rule has been amended since the publication of the draft AR6 Allocation Framework to cover all exclusivity agreements granted by Crown Estate Scotland.
Rule 19 – Tiebreaker Rules:
a. Rule 19.2 (c) reinstated. This rule appeared in the AR4 Allocation Framework and was omitted from the AR5 Allocation Framework in error. It is now reinstated.
Schedule 1 – Definitions:
The following new definitions have been added:
a. ‘BM Unit Metered Volume’ – has the meaning given in the most recently published version of the CfD Standard Terms and Conditions. See Elexon Glossary for AR5
b. ‘Metered Volume’ – has the meaning given in the most recently published version of the Private Network CfD Agreement. See AR5 Standard terms and conditions
c. ‘Offshore Generating Station’ – has the meaning given in Regulation 27(3) of the Contracts for Difference (Allocation) Regulations 2014
d. ‘Offshore Installation’ – has the meaning given in the most recently published version of the Private Network CfD Agreement. This definition will appear in the AR6 Private Network CfD Agreement, which will shortly be subject to consultation.
e. ‘Private Network CfD Agreement’ – is a CfD Agreement for which the Eligible Generator is a Private Network Generator.
Schedule 5 – Application checks to be carried out by the Delivery Body
a. ‘Private Network CfD Agreement’ row added, relating to new Rule 4.1(e).
b. ‘Leasing arrangements for Offshore Generating Stations’ row added, relating to new Rule 4.1(g).
c. Schedule 5 reformatted and published as a separate document to improve readability.
Remote Island Wind (RIW): schematic diagrams
You can use these diagrams as part of your application if you are applying:
- for Remote Island Wind (RIW) CfD units connecting to the national transmission system
- to a distribution system in the local government areas of Comhairle nan Eilean Siar, Orkney Islands Council and Shetland Islands Council
Applicants can annotate the relevant diagram and submit to the Delivery Body to demonstrate that the project meets the condition in Regulation 27A(3)(d) of the Contracts for Difference (Allocation) Regulations 2014 (as amended), as set out in Schedule 5 of the Allocation Framework.
The eligibility requirements for RIW are geographically neutral and applications from any geographical location within scope will be considered.
For the purposes of Allocation Round 6, any references to soft constraints will not be relevant and will not apply for this round.
Last updated 6 March 2024 + show all updates
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Allocation Framework document and Schedule 5 updated with final versions; Remote Island Wind (Shetlands, Orkneys, Western Isles) schematic diagram templates added.
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First published.