Consultation launched on proposals to the Contracts for Difference scheme

Article summary

The Department for Business, Energy & Industrial Strategy has launched a consultation on the proposed changes to the Contracts for Difference (CfD) scheme, which is the government’s primary method of supporting low-carbon electricity generation. The consultation proposals would apply to contracts awarded through future allocation rounds and relate to several areas including the achievement of the UK’s 2050 net zero emissions target, bioenergy, allocation around design, enhancing operation of the CfD and the support of a smart, flexible system. Documents and guidance concerning the CfD fourth round allocation round (AR4), which aims to open in 2021, has also been published. The deadline for responses to the consultation is 11:45pm on 22 May 2020.