CfD: Proposed amendments to the scheme 2020

Closes 22 May 2020

Opened 2 Mar 2020

Overview

This consultation seeks views on a number of proposed changes to the Contracts for Difference (CfD) scheme to ensure it continues to support low carbon electricity generation at the lowest possible cost to consumers. CfDs incentivise investment in renewable energy by providing developers of projects with high upfront costs and long lifetimes with direct protection from volatile wholesale prices, and they protect consumers from paying increased support costs when electricity prices are high. 

The consultation proposes changes to the CfD scheme that would, if implemented, apply to contracts awarded through future allocation rounds, the next of which is planned to open in 2021 subject to any required state aid approval of planned changes.. The proposed changes relate to: 

  • delivering the UK’s 2050 net zero emissions target 

  • bioenergy 

  • allocation round design 

  • improving the operation of the CfD 

  • supporting a smart, flexible system 

The consultation also invites views on some minor potential changes to the Contracts for Difference (Allocation) Regulations 2014 to further improve their operation and clarity.   

Give Us Your Views

Audiences

  • Anyone from any background

Interests

  • Innovation
  • R&D
  • Renewable energy
  • Energy and climate change
  • Electricity
  • Climate change