Consultation outcome

Carbon capture, usage and storage: amendments to Contracts for Difference regulations

From:: Department for Business, Energy & Industrial Strategy
Published: 21 July 2021
Last updated: 29 March 2022 — See all updates

Read the full outcome

CCUS: amendments to Contracts for Difference regulations - summary of responses and government response

PDF, 263 KB, 18 pages

Detail of outcome

This consultation invited views on amendments to the Contracts for Difference regulations to facilitate the award of the dispatchable power agreement (DPA) for Power CCS. The regulations currently consist of:

the Contracts for Difference (Definition of Eligible Generator) Regulations 2014
the Contracts for Difference (Allocation) Regulations 2014

The government response sets out the proposed amendments to the Contracts for Difference regulations and related policy rationale, that will be incorporated in a new Statutory Instrument, The Contracts for Difference (Miscellaneous Amendments) Regulations 2022).

The responses to this consultation are being taken into consideration in the drafting of the proposed SI to amend the secondary legislation as was set out in the consultation. BEIS is aiming for the proposed SI to be put before Parliament in 2022.

Detail of feedback received

We received 16 responses to the consultation, over half of which were from businesses and organisations, including large multinationals and SMEs directly involved in Power CCS.

The remainder came from trade associations, non-governmental organisations and other interested parties.

The responses were largely positive in favour of the proposed changes. Respondents requested some clarifications which we have responded to in the government response.

Original consultation

Consultation description

In the government’s 10 point plan, we committed to deploy carbon capture, usage and storage (CCUS) in 2 industrial clusters by the mid-2020s, and a further 2 clusters by 2030 with an ambition to capture 10 MtCO₂ per year by 2030.

This consultation seeks views on 3 proposed amendments to the Contracts for Difference (CfD) regulations that will facilitate the award of the dispatchable power agreement (DPA) for power carbon capture and storage:

retrofit CCS eligibility for a DPA
payment mechanism terminology
non-pipeline shipping

We encourage anyone with an interest in the development of CCS policy to respond to this consultation.

See the BEIS consultation privacy notice.

Please do not send responses by post to the department at the moment as we may not be able to access them.

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