Contracts for Difference (CfD): proposed amendments to the scheme
Read the full outcome
Detail of outcome
The government response to this consultation is in 2 parts.
Part A
Part A published 6 June 2018 sets out government decisions on:
- the government’s proposal to legislate to differentiate Remote Island Wind from other onshore wind projects to enable them to compete for a CfD in Pot 2 alongside other ‘less established’ technologies
- tightening efficiency requirements for new Combined Heat and Power (CHP) plants and removing the requirement in legislation for certain classes of eligible generator to intend to accredit their project under the CHPQA standard (whilst retaining that requirement within the CfD standard terms and conditions)
- a minor adjustment to the definition of waste used in the CfD scheme to make it clear that the term ‘waste’ excludes any substance that has been intentionally modified or contaminated to fall within the definition of waste in Article 3(1) of the Directive 2008/98/EC (the Waste Framework Directive)
Impact assessments relating to changes to remote island wind and CHP plants were published alongside Part A of the government’s response. The decisions outlined above have been enshrined into legislation though The Contracts for Difference (Miscellaneous Amendments) Regulations 2018, which were made on 23 July 2018.
Part B
Part B published 30 August 2018 includes:
- a summary of the responses received during the consultation on remote island wind, mitigating budgetary risk, Advanced Conversion Technologies, Combined Heat and Power, greenhouse gas criteria for solid and gaseous biomass and changes to improve the operation and clarity of the CfD scheme (to the extent they were not covered in the Part A response)
- the government’s decisions on those matters that it consulted on in December 2017 in light of those responses
Further consultation
On 30 August 2018 the government launched a further consultation to invite views on:
- the way that its decisions on the matters consulted on in the December 2017 consultation will be implemented into the CfD scheme
- a small number of new proposals addressing issues that emerged during the consultation
- proposed minor and technical contract changes.
Find the further consultation and copies of the draft amended CfD contract documents:
Contracts for Difference (CfD): proposed amendments to the contract
Detail of feedback received
We received 89 individual responses from a range of stakeholders, including:
- renewable electricity developers
- trade associations
- local authorities
- members of the public
We also received around 1,400 similar campaign responses expressing views on aspects of the government’s biomass policy and our proposals relating to CHP efficiency requirements.
Original consultation
Consultation description
We’re seeking views on proposed amendments the Contracts for Difference (CfD) scheme, which provides support for new low carbon electricity generation projects, to enable it to continue to support new generation and provide best value for bill payers in coming years.
Government aims to support the development of onshore wind projects on remote islands, where they benefit local communities. This consultation sets out a proposed definition of remote islands wind, as a new technology that can compete in future auctions for ‘less established’ technologies. An impact assessment is published regarding this proposal.
The responses to the Call for Evidence on fuelled technologies in the CfD scheme, published in November 2016, have informed the development of a number of policy changes relating to fuelled technologies. This consultation proposes:
- refinements in relation to Advanced Conversion Technologies, to ensure that only more innovative and efficient plants are awarded subsidy
- changes to the overall efficiency requirements for Combined Heat and Power, to ensure that CfD supported plants are of a suitably high overall efficiency;an impact assessment is being published regarding this proposal
- updated greenhouse gas emissions criteria that new projects using solid and gaseous biomass as feedstock will have to comply with
The consultation also makes new proposals to facilitate more accurate forecasting of budget spend, and invites views on various other potential changes to the detailed terms of new CfD contracts.
As part of this consultation, stakeholder engagement events were held in Glasgow, Cardiff and London. The questions raised and points of clarification on the proposed changes are answered in the Stakeholder Q&A.
Documents
Updates to this page
Last updated 30 August 2018 + show all updates
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Part B of government response published, along with follow-up consultation.
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Government response to the first part of the consultation published.
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A stakeholder Q&A has been added, covering questions raised at stakeholder events relating to this consultation.
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First published.