04/18/2023

UK Government plans to change its CfD scheme

Image: Pixabay

The reforms could see applicants considering overall costs alongside other ‘non price factors’ - such as supply chain sustainability, addressing skills gaps, innovation and enabling system and grid flexibility and operability.

Official Press Release UK Government:

Government explores major reform to flagship renewables scheme to improve energy security and drive investment

Government seeking views on introducing Contracts for Difference reforms rewarding applicants for including factors not only based on price in projects.

A major reform to the government’s flagship renewables scheme that could help drive further investment in renewable energy deployment and improve energy security is being explored in plans set out on Monday 17 April. The Contracts for Difference (CfD) scheme is the government’s mechanism for supporting new British low-carbon electricity generation projects, such as offshore wind and solar developers, and along with FIDER, an early form of the scheme, has awarded contracts to new low carbon projects in Britain with a total capacity of 26.1GW. The competitive nature of the scheme has already proven... ... More: Official Press Release UK Government