Government publishes Allocation Round 7 consultation
The Government has today published a consultation seeking views on proposed amendments to the Contracts for Difference (CfD) scheme for Allocation Round 7 (AR7) and future rounds.
The consultation is divided into two sections. The first section sets out proposals that, if implemented, would be delivered in time for AR7 (scheduled to open in 2025), while the second section seeks early views on longer-term considerations.
Proposals for AR7 include:
- Enabling repowering projects to apply for a CfD in AR7 in limited circumstances (for onshore wind projects)
- Expanding the phased CfD policy to floating offshore wind projects
- Streamlining the appeals process for annual auction rounds
- Introducing changes to metering to better enable CfD generators to co-locate with other assets
Longer-term considerations include:
- How the CfD could support innovation in floating offshore wind foundation technology as the sector develops
- How the CfD could support the delivery of improved coordination of offshore transmission infrastructure
- Whether CfD indexation should be updated to better reflect inflation risks
The consultation closes on 7 March 2024.
Consultation webinar
- First date: Monday 5 February 2024, 2.30pm to 4.30pm
- Second date: Thursday 8 February 2024, 10am to 12pm
The Department for Energy Security and Net Zero will be holding a webinar on the above dates to talk through the consultation proposals and take any questions you may have. The same webinar will be held on both dates, so it is only necessary to attend one of the dates.
You are welcome to submit questions in advance of the webinar to ContractsforDifference@energysecurity.gov.uk.
The deadline for registration and advance questions is 29 January 2024.