Guidance

Contracts for Difference (CfD) Allocation Round 5: Allocation Framework

The Allocation Framework sets out the rules for Contracts for Difference Allocation Round 5 and the eligibility requirements applicants must satisfy.

Documents

Western Isles schematic diagram template

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Shetland Isles schematic diagram template

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Orkney schematic diagram template

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Details

The Allocation Framework for CfD Allocation Round 5 (AR5) sets out:

  • the rules for Allocation Round 5
  • the eligibility requirements that applicants must satisfy

Remote Island Wind (RIW): schematic diagrams

You can use these diagrams as part of your application if you are applying:

  • for Remote Island Wind (RIWCfD units connecting to the national transmission system
  • to a distribution system in the local government areas of Comhairle nan Eilean Siar, Orkney Islands Council and Shetland Islands Council

Applicants can annotate the relevant diagram and submit to the Delivery Body to demonstrate that the project meets the condition in Regulation 27A(3)(d) of the Contracts for Difference (Allocation) Regulations 2014 (as amended), as set out in Schedule 5 of the Allocation Framework.

The eligibility requirements for RIW are geographically neutral and applications from any geographical location within scope will be considered.

For the purposes of Allocation Round 5, any references to soft constraints will not be relevant and will not apply for this round.

Differences from fourth Allocation Round

The most significant differences from the fourth Allocation Round (AR4) are:

  • additional check of compliance with Private Network Agreement eligibility criteria in Rule 4 and Schedule 5
  • clarification on the allocation round start date in Rule 8
  • simplification of Notice of Auction requirements in Rule 10
  • clarifications about setting admissible target dates in Rules 11 and 12, and Schedule 1.
  • clarification about clearing prices for minimum auctions in Rule 17
  • clarification that capacity caps may not be exceeded in auction tiebreakers in Rule 19
  • addition of a definition of a Private Network Generator in Schedule 1

The final Allocation Framework for AR5 includes additional clarification within Schedule 1 that (with the exception of later phases of Phased Offshore Wind CfD units) the Target Commissioning Date must fall within the Delivery Years.

Updates to this page

Published 14 December 2022
Last updated 23 March 2023 + show all updates
  1. Added schematic diagrams for Western Isles, Orkneys and Shetlands.

  2. Added final framework. We will publish the schematic diagrams for Western Isles, Shetland Isles, and the Orkneys before the Round opens on 30 March.

  3. First published.

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