CfD Stakeholder Bulletin — 3 August 2023
Summary
DESNZ increased the AR5 CfD budget by £22m to £227m total, allocating £20m extra to mature technologies in Pot 1 (now £190m) and £2m extra to emerging technologies in Pot 2 (now £37m). Pot 2 retains £10m ring-fenced for tidal stream projects.
Why it matters
Budget increases suggest either higher cost expectations or political pressure to support more capacity. The allocation heavily favours mature technologies over emerging ones, reinforcing the existing deployment hierarchy rather than accelerating new technology development.
Key facts
- •£22m budget increase
- •Pot 1: £190m total (+£20m)
- •Pot 2: £37m total (+£2m)
- •£10m ring-fenced for tidal stream
- •AR5 allocation round
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 3rd August 2023 Government Increases Allocation Round 5 Budget The budget for the fifth allocation round (AR5) has been increased by £22m to provide a total available budget of £227m. ‘Pot 1’ technologies, such as offshore and onshore wind and solar, will receive £20m additional support, increasing the total budget for Pot 1 to £190m. Emerging technologies in ‘Pot 2’ will receive £2m additional support, increasing the total budget for Pot 2 to £37m. This includes £10m ring-fenced support for tidal stream projects, as previously announced. • AR5 budget revision notice • Government press release More information can be found in the news item published on the microsite. 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 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 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.