Government publishes Sustainable Industry Reward consultation response
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.
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.
The framework is a draft document that will continue to be iterated and updated. All new drafts will be published on the dedicated GOV.UK page (linked above) and on this website, and updates will be publicised to industry stakeholders.