Call for evidence outcome

Introducing non-price factors into the Contracts for Difference scheme: call for evidence

From:: Department for Energy Security and Net Zero
Published: 17 April 2023
Last updated: 8 September 2023 — See all updates

Applies to England, Scotland and Wales

Read the full outcome

Introducing non-price factors into the CfD Scheme: government response to call for evidence

PDF, 261 KB, 20 pages

Detail of outcome

This call for evidence aimed to understand the possible benefits and drawbacks of valuing factors other than just price in the allocation of Contracts for Difference. It covered:

a range of potential delivery models for the introduction of non-price factors
the kind of factors that could be valued through this process

The government response summarises the feedback and sets out some of the initial conclusions drawn from it.

We will now consider next steps on this policy.

We received 92 responses to this call for evidence:

45 from developers
17 from the supply chain
18 from various trade and representative bodies
3 from public bodies
3 from investors
6 from individuals

Feedback covered:

views on the viability of the potential delivery models and their unintended consequences
the suitability of some of the possible criteria put forward by the government

Original call for evidence

Call for evidence description

In recognition of the deployment challenges currently faced by the renewable energy industry, government is exploring introducing non-price factors in the CfD auction. This could mean applicants would have to balance overall costs with other non-price factors such as:

sustainability
capacity building
innovation addressing skills gaps
enabling system flexibility and operability

We are seeking views on:

potential mechanisms for implementing non-price factors into CfD auctions
potential non-price factors that should be valued in CfD auctions

We welcome responses from anyone but expect it to be of particular interest to:

those considering developing new low carbon energy projects in Great Britain (GB)
businesses involved in low carbon electricity generation supply chains
electricity traders and suppliers
businesses operating in the bioenergy sector
consumer and environmental groups with an interest in the electricity sector

See our consultation privacy notice.

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