Contracts for Difference Consultation

ERCP`s response to the government`s consultation on contracts for difference. This response sets out our renewable energy priorities and emphasizes the importance of accountability to local people and community ownership. In March 2020, the government held consultations on a number of proposed amendments to the Contracts for Difference (CfD) programme ahead of the fourth round of allocations (AR4), scheduled for the end of 2021. This consultation proposes further amendments to the supply chain plan regime and amendments to the CfD contract. The new consultation includes copies of the amended draft CfD contract and draft supply chain plan guidance documents. This consultation will seek views on a number of proposed changes to the Contracts for Difference (CFD) system to ensure that it continues to support the generation of low-carbon electricity at the lowest possible cost to consumers. CFDs encourage investment in renewable energy by offering project developers high upfront costs and a long lifespan with direct protection against wholesale price volatility, and they protect consumers from increased support costs when electricity prices are high. More information and details on the answer can be found on the GOV. The British side of the consultation.

Drafts of the CfD agreement and terms and conditions will be published with this consultation document, in which the proposed changes are highlighted and highlighted in colour. In November 2020, the Government consulted on a number of proposals to strengthen our supply chain plan policy and amendments to the DFC Treaty to implement some of the policy choices set out in the Government`s response to the March 2020 consultation. Subject to the results of this consultation, the CFD rules could be amended to give effect to these new requirements. The November consultation presents details of the proposed new supply chain plan process, including information on what proponents must submit and when, the ongoing monitoring process and the assessment approach. As part of this consultation, a new draft guidance document for the supply chain plan was prepared explaining the proposed procedure. Previous changes to the CfD contract prior to RA4 were confirmed in a response to an intergovernmental consultation in May 2021. The changes proposed in this latest consultation are intended to: Respondents are invited to review the November consultation to inform their responses to this consultation through the new Supply Chain Plan Questionnaire. The proposals included in this consultation are intended to be consistent with the proposals made during the November consultation and not to prejudge the results of this consultation. This consultation ran from March 2, 2020 to May 29, 2020, 11:45 p.m. .m.

In light of COVID-19, we have extended the consultation period until May 29 to give people more time to respond. At the end of this consultation, we will analyze the responses, summarize the views expressed, and present the final decisions in a government response. We intend to publish it on the GOV.UK website in the summer of 2021, before the opening of the fourth round of CfD allocations at the end of 2021. We welcome answers from anyone interested in supply chain questions. We expect this consultation paper to be of particular interest to those considering the development of new low-carbon energy projects in the UK, to companies involved in low-carbon electricity generation supply chains, and to consumer and environmental groups interested in the electricity sector. Contracts for Difference for low-carbon electricity generation: response to the consultation Alongside the consultation, an impact assessment was published to assess the costs and benefits of the main aspects of these changes if implemented. The consultation proposes amendments to the CfD scheme which, if implemented, would apply to contracts awarded in future allocation cycles, with the next one to be opened in 2021, subject to the necessary approval of the planned state aid amendments. The proposed amendments concern: It is envisaged that the consultation will be of particular interest to those considering participation in AR4. Home ❯ Resources ❯ ERCP Response to the Consultation on Contracts for Difference We are seeking views on proposals for a new Supply Chain Plan Questionnaire that CfD applicants can complete. It forms the basis for the initial assessment before an allocation cycle and the ongoing monitoring, review and evaluation after signature by the CfD. These plans were established during the November 2020 consultation on proposals to strengthen our supply chain plan policy and changes to the CfD contract.

Interested parties may consider the two consultations together. This consultation will run in conjunction with the November consultation on the supply chain plan process for 2 weeks until the end of the first consultation on January 28, 2021. You will then have another 6 weeks to respond to this consultation. This consultation closes on 18 January 2021 at 23:45 We welcome answers from all those interested in these questions. We anticipate that this consultation paper will be of particular interest to: On November 24, 2020, the government launched another consultation to seek views on the following issues: Due to current restrictions, we will not be able to access responses mailed to 1 Victoria Street. If you would like to make a postal submission or have already done so, please contact the team at BEISContractsforDifference@beis.gov.uk or 020 7215 5000. In addition, we are seeking opinions on the government`s proposal not to extend the phase classification to floating offshore wind projects. To do this, we will attempt to provide up to twice the renewable energy capacity in the fourth allocation cycle of the Contract for Difference (CfD), which begins at the end of 2021, compared to the last auction. As we pursue our ambitions and remain a global leader in green technologies, it is essential that our economy recognizes the economic benefits of this large-scale infrastructure program. . The applicant`s responses to the assessed sections of the Supply Chain Plan questionnaire will be assessed to determine eligibility to participate in the CFD program.

The implementation of the activities and outcomes committed to in the assessed sections of the supply chain plan will then be monitored as part of an ongoing post-CFD signing process. Finally, they are evaluated in the supply chain implementation report by the Secretary of State before the plant is commissioned. We are seeking advice on proposals to amend the supply chain plans and the CfD contract to allow for continued support for new low-carbon production and promote the growth of sustainable supply chains. . Joint report of the ERCP and the Centre for Sustainable Energy (CSE). Please do not mail responses to the ministry at this time, as we may not be able to access them. However, Energy Systems Catapult welcomes this call for evidence recognizing that CfD generators are isolated from wholesale market signals and incentives to export electricity in line with the needs of the electricity grid. We also welcome the government`s openness to implement without delay the changes identified as a result of this exploratory meeting of the fourth round of allocations. However, we believe that the scope of this consultation should be extended to the two areas described below. .

We use this information for internal research purposes to better understand which stakeholders in the energy sector are interested in which areas of our work. .