CfD Stakeholder Bulletin — 13 March 2024

Contracts for Difference: Stakeholder Bulletin 13 March 2024 Government publishes response to AR6 contract changes consultation The Government has today published the response to the Allocation Round 6 (AR6) contract changes consultation alongside the final contract documents for the round. The response confirms changes to make generators that directly supply offshore oil and gas facilities ineligible for the Private Network CfD Agreement from AR6 onwards, implementing the government’s previous decision on this matter. It also confirms that the definition of Milestone Delivery Date (MDD) has been amended to allow the MDD to be extended where a generator has not received confirmation from the Ministry of Defence of the availability of suitable mitigation measures in relation to interference between windfarms and air defence radar systems. Other confirmed contract changes concern strengthening ‘Know Your Customer’ checks and introducing a new threshold for the Change Control Procedure. • Read the AR6 contract changes consultation response • Final AR6 contract documents AR7: Government publishes response to Sustainable Industry Reward consultation The Government has today published its response to the consultation on introducing a CfD Sustainable Industry Reward (SIR). The response confirms that the CfD SIR process will run for three years from Allocation Round 7 (2025) onwards as a competitive allocation for extra revenue support. The SIR process will take place six months before the main CfD auction, and applicants will need to meet minimum standards to gain access. Some key aspects of the proposed SIRs have been amended to simplify the process. The number of criteria has been reduced to two, and there are now only three questions. The criteria for SIRs will be: a) Investment in shortening supply chains in deprived areas in the UK; or b) Investment in more sustainable means of production anywhere in the world; or c) A combination of both approaches by investing in shorter supply chains in UK deprived areas and ensuring that such investment goes to more sustainable means of production. • Read the SIR consultation response The Government has also published the draft CfD SIR Allocation Framework (PDF, 516KB), which sets out the mechanics of how SIRs will operate, for further discussion with industry. This is a draft document that will continue to be iterated and updated, and all new drafts will be published on the dedicated GOV.UK page (linked above) and publicised to industry stakeholders. AR6 event materials now available If you were unable to attend the ‘Introduction to Allocation Round 6’ online event on 22 February 2024 or would like to revisit what was covered, materials from the event are now available via the CfD microsite. These include: • Presentation slides (PDF, 6.45MB) • A recording of the event • Q&A (PDF, 343KB) • A video on the allocation process If you have any queries after consulting these materials, please submit them via the contact page on the microsite. AR6 applicant readiness webinar • Date: Thursday 21 March 2024, 10am to 11am National Grid ESO will host a webinar on the above date to help prospective applicants prepare for submitting an application in AR6. • Find out more and register here 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 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.