Detailed guidance on the terms of the standard form Contract for Difference (CfD): from signature to commissioning
Produced in partnership with Paul Dight of Addleshaw Goddard
Detailed guidance on the terms of the standard form Contract for Difference (CfD): from signature to commissioning

The following Environment guidance note Produced in partnership with Paul Dight of Addleshaw Goddard provides comprehensive and up to date legal information covering:

  • Detailed guidance on the terms of the standard form Contract for Difference (CfD): from signature to commissioning
  • Introduction
  • The standard form Contract for Difference
  • Key deadlines in the CfD—from signature to commissioning

Introduction

This Practice Note forms part of our suite of detailed guidance on the main terms of the standard form Contracts for Difference (CfD) contracts, issued to renewable electricity generators pursuant to the CfD allocation rounds held to date. The focus of this Practice Note is the terms of the CfD contract relevant to the period from CfD signature to the point at which the project is commissioned, and begins to be paid under the CfD. Our other relevant Practice Notes include:

  1. Detailed guidance on the terms of the standard form Contract for Difference (CfD): from commissioning to expiry—this Practice Note provides complementary guidance on the CfD contract provisions relevant once a project has been commissioned and subsidy payment has commenced

  2. Contracts for Difference (CfD)—key features—this Practice Note provides a detailed overview of the CfD mechanism as a whole, including the pre-contractual legislative process under which standard form CfD contracts are awarded and the types and forms of standard and non-standard form CfD contracts awarded to date

  3. Investment contracts—early contracts for difference (CfD)—this Practice Note introduces the early form CfD contracts (known as ‘Investment Contracts’ or ‘Final Investment Decision (FID) Enabling for Renewables (FIDER) contracts’) issued to certain projects in 2014

The standard form Contract for Difference

The standard form CfD contract has its roots in section 11