CfD Stakeholder Bulletin — 7 July 2021
Summary
The government finalised the Supply Chain Plan questionnaire for CfD Allocation Round 4, simplifying questions and improving guidance clarity. New regulations came into force adding and removing eligible technologies, strengthening supply chain requirements, and extending delivery years for successful projects. AR4 opens in December 2021, aiming to secure double the renewable electricity capacity of the previous round.
Why it matters
The simplified questionnaire reduces compliance costs for developers while strengthened supply chain requirements create additional barriers to entry. As such, this favours larger developers with established supply chains over smaller entrants who may struggle with enhanced due diligence requirements.
Key facts
- •AR4 opens December 2021
- •Aims to secure double the renewable capacity of previous round
- •Extends delivery years for successful projects
- •Supply Chain Plan questionnaire simplified but requirements strengthened
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 7 July 2021 Government revises Supply Chain Plan questionnaire The government has today published its response to the consultation on a new Supply Chain Plan (SCP) questionnaire. The response confirms decisions made to restructure the SCP questionnaire, simplify many of the questions and improve the clarity of the guidance for the SCP process. Both the questionnaire and guidance are now final ahead of the fourth Contracts for Difference (CfD) allocation round, which is planned to open in December this year. • For further information, including the consultation response and revised documents, visit the Allocation Round 4 microsite. Amended regulations come into force The Contracts for Difference (Miscellaneous Amendments) Regulations 2021 are now in force and will apply from Allocation Round 4 (AR4) onwards. These regulations make a number of amendments to various CfD regulations, including adding and removing technologies from the list of technologies eligible to compete in a CfD round, strengthening the SCP process, extending the delivery years that can be set for successful projects, and a number of minor and technical changes. These amendments will help to support the ambition for AR4, which aims to secure up to double the amount of renewable electricity achieved in the previous round, depending on the available pipeline. They will also help the government make progress towards the 2050 net zero target. The amendments follow two public consultations. The government responses to these, and the consultations themselves, can be found on the AR4 microsite’s publications page. UK General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contracts for Difference stakeholder contact list. We issue these stakeholder bulletins as a convenience to interested parties, however it is not in any way essential to be on this list to participate in major consultations or allocation rounds. Purpose & scope of this list: This list is managed by the Department for Business, Energy and Industrial Strategy (BEIS) (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contracts for Difference scheme for renewable energy projects (and any direct successor schemes). It is not used for any other purposes. To be removed from the circulation list: Please send a blank e-mail with the subject ‘opt out’ (if the receiving e-mail you use is different to the one you send the e-mail from, include that e-mail address in the subject of the e-mail) to BEISContractsForDifference@beis.gov.uk. If you have received this indirectly and want to be added to this list: Send a blank e-mail with the subject line ‘opt in’ to BEISContractsForDifference@beis.gov.uk. You can withdraw your consent to opt in at any time. We will normally keep your address on this list until you: a) withdraw your consent to opt in, b) the scheme closes without any successor, c) we receive reports your email address is no longer operational, or d) you do not respond to a periodic request from us to reconfirm your desire to opt in.