Consultation on Amendments to the Contracts for Difference Scheme

The Government has published the response to the consultation on policy considerations for future rounds of the Contracts for Difference (CfD) scheme. This sets out the government position on proposed policy amendments for the next and future allocation rounds.

The government response confirms the government’s decision on implementing the following amendments to the scheme ahead of Allocation Round 7:

• Repowering: To ensure repowered onshore wind projects that meet the eligibility criteria can bid into the CfD from AR7.
• Phased CfDs for floating offshore wind (FLOW): To extend the phased CfD policy currently available for fixed-based offshore wind (OFW) projects to FLOW projects.

It also confirms the government’s response on a range of policy considerations for future rounds beyond Allocation Round 7, including:

• Appeals: To not pursue the introduction of a pre-qualification process ahead of the next allocation round, nor to amend the grounds for appeal, but to take forward work to implement a fixed timeline for future rounds.
• Hybrid metering: To not implement hybrid metering in the CfD before it is clear how such assets would be treated in the wider system. Therefore, hybrid metering will not be implemented for the next allocation round, and the need for future amendments will be considered in light of any wider market changes that are brought forward in this area.
• Floating offshore wind (FLOW) definition: To continue to work with stakeholders with a view to developing a long-term solution to the eligible definition of floating offshore wind projects
• Facilitating coordinated infrastructure: To continue to consider how the CfD could better support projects that connect into multi-purpose interconnectors/or bootstrap infrastructure.
• Indexation:  Full CfD indexation to CPI continues to offer comparatively advantageous terms in an increasingly competitive global market. The Government therefore does not currently intend to make any changes to this approach but will reflect further on alternative approaches and priorities ahead of future allocation rounds.
  

Changes for future rounds will be subject to further consultation ahead of future allocation rounds, where appropriate.

More information can be found on the gov.uk website.