Contracts for Difference: contract changes for Allocation Round 5
We're seeking views on the proposed contract changes for the fifth allocation round of the Contracts for Difference scheme.
This consultation closes at
This consultation seeks views on drafting changes to the Contracts for Difference (CfD) Standard Terms and Conditions and Private Network Agreement in advance of Allocation Round 5 (AR5), which is scheduled to open in March 2023. The proposed changes will:
- clarify that the flexibility in the contract for generators to delay their CfD start date should not be used to optimise electricity generation revenue prior to starting the CfD contract
- simplify data provision requirements for generators
- update definitions in the CFD Private Network Agreement to ensure better alignment with regulations
- update interest rate calculations for repaying cumulated subsidy following the UK’s exit from the EU
- remove BSUoS (Balancing Services Use of System) charge clauses, reflecting Ofgem’s decision that these charges will no longer be levied on generators
- reflect new supply chain plan requirements for floating offshore wind projects
The proposed drafting changes are shown as tracked amendments in the CfD Standard Terms and Conditions and CfD Private Network Agreement, published alongside this consultation document.
We welcome responses from anyone with an interest in the proposals, in particular those considering participating in AR5.
Read the BEIS consultation privacy notice.