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CfD Stakeholder Bulletin — 7 March 2022

DESNZ·notice·medium·7 Mar 2022·source document

Summary

National Grid ESO completed qualification assessment for CfD Allocation Round 4 on 25 February 2022, with non-qualifying applicants having until 25 March to request review. If all applications qualify after review, sealed bid invitations will be issued by 5 April 2022. Appeals to Ofgem can be submitted 28 March to 1 April for upheld non-qualification decisions.

Why it matters

The extended timeline delays price discovery for AR4 projects, postponing the market test of renewable strike prices. Administrative queuing takes precedence over price signals, with multiple review layers protecting applicants from qualification decisions rather than improving the underlying assessment criteria.

Key facts

  • Non-qualification review window closes 25 March 2022
  • Appeals window 28 March to 1 April 2022
  • Sealed bids invited by 5 April if all qualify
  • Original timeline scenarios 1 and 2 no longer applicable

Timeline

Decision expected2022-04-05

Areas affected

cfdrenewables

Related programmes

CfD
Memo

Contracts for Difference: Stakeholder Bulletin 7 March 2022 Allocation Round 4 update The non-qualification review assessment window is now open. National Grid ESO will assess any non-qualifying applications that were submitted for review by 25 March 2022. National Grid ESO informed all Allocation Round 4 (AR4) applicants of the outcome of their application following the qualification assessment window, which concluded on 25 February 2022. Between 28 February and 4 March 2022, any applicants that did not qualify could submit a request for National Grid ESO to review its decision. National Grid ESO will review the relevant applications by 25 March 2022. Once the non-qualification review assessment window is complete, any decisions that are upheld may be appealed. Applicants that remain non-qualifying following National Grid ESO’s determination may submit an appeal to Ofgem for a decision. Requests for appeals should be submitted from 28 March to 1 April 2022. If the review finds that all relevant applications qualify for AR4, National Grid ESO will notify applicants whether an auction is required and, if so, invite the submission of sealed bids. This will happen by 5 April 2022 if all applications qualify following the review. For further information on the various stages of the round, see this table setting out the original five potential timeline scenarios for AR4 (PDF, 94KB). Note that a non-qualification review assessment window has been required, so timelines one and two in the table are no longer applicable for AR4. Further updates on AR4 will be provided via the AR4 microsite and this bulletin as the round progresses. UK General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contracts 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 Contracts 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.