Additions to the CfD contract arising from the introduction of the Clean Industry Bonus
Consultation description
We are proposing additions to the Contract for Difference contract, specifically the changes required to include the Clean Industry Bonus (CIB) in the contract.
The CIB works within the Contracts for Difference (CfD) mechanism to competitively allocate extra revenue support (‘a bonus’) to offshore wind and floating offshore wind applicants who take meaningful action to increase the social, environmental and economic sustainability of the supply chain. Successful generators will be subject to the conditions and rules set out in the CIB Allocation Framework, CIB Guidance, and the proposed draft additions to the CfD contract.
The proposed additions will:
- enable the CfD CIB mechanism to operate through the CfD contract
- ask the generator to comply with all outlined notice requirements
- set the rights and obligations arising from the CIB, CIB payment terms, and how performance related adjustments will operate in cases of non-delivery
- allow the CfD counterparty, the Low Carbon Contracts Company, to act on the contents of the generator’s CIB Implementation Statement, including any Performance Related adjustments
- set out how indexation and interest will work, and how CIB payments will work alongside a generator’s CfD payments
The proposed drafting changes are shown as tracked amendments to the contract which we have published here alongside the consultation document.
We welcome responses from anyone with an interest in the proposals, in particular those considering participating in the first CIB round ahead of Allocation Round 7.
Note that the regulations and the Contract still refer to the policy as the Sustainable Industry Rewards. For the avoidance of doubt, these are the same but the legal terminology will have to continue referencing the old policy name to an extent given it is set out in regulations.
Read our consultation privacy notice.