CfD Stakeholder Bulletin — 11 January 2024
Summary
DESNZ opens consultation on CfD scheme amendments for Allocation Round 7 (opening 2025) and future rounds. Key AR7 proposals include enabling onshore wind repowering projects to bid, extending phased CfDs to floating offshore wind, and streamlining appeals processes. Longer-term considerations cover floating wind foundation innovation support, offshore transmission coordination, and inflation indexation updates.
Why it matters
This expands CfD eligibility while maintaining the administered pricing model rather than market-based allocation. The repowering provision removes barriers for existing wind farms seeking life extension, though limited to onshore projects initially. As such, this favours asset owners with existing sites over greenfield developers competing for new locations.
Key facts
- •AR7 scheduled to open in 2025
- •Consultation closes 7 March 2024
- •Repowering limited to onshore wind projects initially
- •Phased CfDs extended to floating offshore wind
- •Webinars scheduled for 5 February and 8 February 2024
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 11 January 2024 Government publishes Allocation Round 7 consultation The Government has today published a consultation seeking views on proposed amendments to the Contracts for Difference (CfD) scheme for Allocation Round 7 (AR7) and future rounds. The consultation is divided into two sections. The first section sets out proposals that, if implemented, would be delivered in time for AR7 (scheduled to open in 2025), while the second section seeks early views on longer-term considerations. • Read the full consultation and respond Proposals for AR7 include: • Enabling repowering projects to apply for a 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 Longer-term considerations include: • How the CfD could support innovation in floating offshore wind foundation technology as the sector develops • How the CfD could support the delivery of improved coordination of offshore transmission infrastructure • Whether CfD indexation should be updated to better reflect inflation risks The consultation closes on 7 March 2024. Consultation webinar • First date: Monday 5 February 2024, 2.30pm to 4.30pm • Second date: Thursday 8 February 2024, 10am to 12pm We will be holding a webinar on the above dates to talk through the consultation proposals and take any questions you may have. The same webinar will be held on both dates, so it is only necessary to attend one of the dates. • Register to attend the webinar You are welcome to submit questions in advance of the webinar to ContractsforDifference@energysecurity.gov.uk. The deadline for registration and advance questions is 29 January 2024. General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted into the Contract for Difference stakeholder contact list. We issue these stakeholder bulletins as a convenience to interested parties, however it is not in any way essential to be on this list to participate in major consultations or allocation rounds. Purpose & scope of this list: This list is managed by the Department for Energy Security and Net Zero (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contract for Difference scheme for renewable energy projects (and any direct successor schemes). It is not used for any other purposes. To be removed from the circulation list: Please send a blank e-mail with the subject ‘opt out’ (if the receiving e-mail you use is different to the one you send the e-mail from, include that e-mail address in the subject of the e-mail) to ContractsforDifference@energysecurity.gov.uk. If you have received this indirectly and want to be added to this list: Send a blank e-mail with the subject line ‘opt in’ to ContractsforDifference@energysecurity.gov.uk. You can withdraw your consent to opt in at any time. We will normally keep your address on this list until you: a) withdraw your consent to opt in, b) the scheme closes without any successor, c) we receive reports your email address is no longer operational, or d) you do not respond to a periodic request from us to reconfirm your desire to opt in.