CfD Stakeholder Bulletin — 14 October 2022
Summary
DESNZ published a draft timeline for CfD Allocation Round 5, scheduled to begin March 2023. This implements the February 2022 commitment to run CfD auctions annually instead of every two years. The timeline remains indicative pending final confirmation.
Why it matters
Annual rounds double the frequency of CfD capacity procurement, potentially reducing developer uncertainty but requiring more frequent government budget commitments. As such, this accelerates the rate at which the CfD levy base expands while maintaining the same administrative overhead structure.
Key facts
- •AR5 to commence March 2023
- •Annual rounds replace previous two-year cycle
- •Timeline remains draft and subject to change
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 14 October 2022 Allocation Round 5 draft timeline A draft indicative timeline for Allocation Round 5 (AR5) has been published on the Contracts for Difference (CfD) microsite. As the Government announced in February 2022, CfD rounds will now happen annually, instead of every two years. It is planned for AR5 to get underway in March 2023. This is an indicative timeline that sets out the key milestones for AR5. Timings may be subject to change and a final timeline will be published in due course. • AR5 Draft indicative timeline scenarios General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to 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 Business, Energy and Industrial Strategy (BEIS) (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 BEISContractsForDifference@beis.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 BEISContractsForDifference@beis.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.