Contracts for Difference: Contract amendments to implement Clean Industry Bonus reforms
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes contract amendments to implement Clean Industry Bonus reforms for Allocation Round 8, adding workforce protection measures, skills investment criteria, and extending the bonus scheme to onshore wind for AR9. The consultation runs until March 2026 with final contracts expected before AR8 opens. Changes also include hybrid metering contract amendments affecting all CfD agreements.
Why it matters
This layers additional supply chain requirements onto offshore wind developers seeking CfD contracts, creating compliance costs that may advantage larger developers with established ESG capabilities. As such, it transforms the CfD from a pure price mechanism into an industrial policy tool that favours incumbents over entrants.
Key facts
- •Clean Industry Bonus extends to onshore wind for AR9
- •Fair Work Charter requirements for workforce protection
- •Skills investment criteria added as bonus condition
- •Hybrid metering contract changes affect all CfD agreements
Areas affected
Related programmes
Memo
What this is about
DESNZ is proposing amendments to Contracts for Difference agreements to implement Clean Industry Bonus reforms ahead of Allocation Round 8. The CIB provides additional revenue support to offshore wind projects that meet social, environmental and economic sustainability criteria. Following a consultation in August-October 2025, DESNZ published its response in February 2026 and now needs to amend CfD contracts to implement the policy changes.
The proposed amendments introduce workforce protection measures through a Fair Work Charter, new skills investment criteria, and extend the CIB scheme to onshore wind from AR9. The consultation also covers hybrid metering contract changes affecting all CfD agreements. These changes represent a significant expansion of the CIB from its original scope, transforming it from a targeted offshore wind supply chain incentive into a broader industrial policy tool that embeds labour standards and skills requirements directly into renewable energy contracts.
Options on the table
The consultation document does not present distinct policy options for stakeholder choice. Instead, it sets out specific contract amendments needed to implement decisions already taken following the earlier CIB reform consultation. The key changes are:
Workforce protection measures
New Fair Work Charter requirements for offshore wind projects accessing CIB support. This creates enforceable labour standards within CfD contracts, including provisions around employment practices, health and safety, and worker representation. Projects must demonstrate compliance to access bonus revenue. Large developers with established ESG frameworks gain advantage, while smaller entrants face additional compliance costs and barriers.
Skills investment criteria
Enhanced requirements for developers to invest in workforce development and training as a condition of CIB support. This moves beyond current supply chain commitments to mandate specific skills development activities. Developers must demonstrate quantifiable skills investment to access bonus revenue, creating measurable obligations that extend project costs beyond construction and operation.
Onshore wind inclusion for AR9
Extension of CIB eligibility to onshore wind projects from Allocation Round 9 onwards. This significantly expands the scheme's scope beyond offshore technologies, potentially increasing competition for bonus allocations while spreading industrial policy objectives across more of the renewable energy sector. Onshore developers gain access to additional revenue streams but must meet the same sustainability criteria as offshore projects.
Hybrid metering amendments
Technical changes to accommodate projects with multiple connection points or mixed technology types. These amendments affect all CfD agreements, not just CIB participants, updating contract terms to reflect evolving grid connection arrangements and technology combinations.
Questions being asked
The consultation document and supporting materials are not readily accessible to provide specific consultation questions. Based on the consultation scope described, key areas likely to be addressed include:
Contract drafting and implementation
Questions around the specific contract language, timing of implementation, and interaction with existing CfD terms. The consultation includes tracked changes to standard terms and conditions across multiple agreement types.
Compliance and monitoring
Questions on how workforce protection measures and skills investment criteria will be monitored, enforced, and integrated with existing CfD compliance frameworks.
Scope and eligibility
Questions around the extension to onshore wind, including timing, criteria application, and interaction with existing support mechanisms.
Technical amendments
Questions on hybrid metering provisions and their application across different project types and connection arrangements.
How to respond
The consultation closes in March 2026, though the specific deadline is not provided in the available text. Responses should be submitted via the consultation process outlined on GOV.UK, with queries directed to renewableCIBs@energysecurity.gov.uk.
DESNZ particularly welcomes responses from stakeholders considering CIB participation ahead of Allocation Round 8. The government will publish a response and final contract versions before opening the CIB round.
Full consultation materials are available on GOV.UK, including the consultation document, tracked changes to various CfD agreement types, and supporting documentation covering standard terms and conditions, generic agreements, and specialized agreement forms for different project structures.
Source text
We are proposing amendments to the Contracts for Difference contract, specifically the amendments required to implement the Clean Industry Bonus (CIB) AR8 changes. The CIB works within the Contracts for Difference mechanism to competitively allocate extra revenue support (‘a bonus’) to offshore wind and floating offshore wind applicants who take meaningful action to increase the social, environmental and economic sustainability of the supply chain. Successful generators will be subject to the conditions and rules set out in the CIB Allocation Framework, CIB Guidance and the CfD contract. We committed to build on the early successes of the CIB and in order to deliver on this, we consulted between August and October 2025 on regulatory reforms to the CIB scheme ahead of Allocation Round 8. The government response to that consultation was published on 4 February and in order to implement some of the positions provided by the response, we are proposing changes that need to be made to the CfD contract. These changes relate to implementing: * Workforce protection measures for offshore wind through a Fair Work Charter. * Skills investment criteria. * Onshore wind into the CIB for AR9. * Process improvements so that the scheme continues to function as effectively as possible. This consultation will also consult on hybrid metering contract changes which is not a CIB-specific contract amendment but a wider CfD amendment. The proposed drafting changes are shown as tracked amendments to the contract which we have published here alongside the consultation document. We are also publishing CfD Phased Agreements (both single metering and apportioned), CfD Generic Agreements, CfD Private Network Agreements and CfD Unincorporated Joint Venture Agreements as some of the contract changes consulted on in this consultation may have implications that require proposed changes to be made to those documents too. We welcome responses from anyone with an interest in the proposals, in particular those considering participating in the CIB ahead of Allocation Round 8. Once the consultation has closed, we will work to publish a government response and final version of the contract prior to opening the CIB round. Please direct any queries on the consultation to: renewableCIBs@energysecurity.gov.uk Read the [consultation and related documents on GOV.UK](https://www.gov.uk/government/consultations/contracts-for-difference-contract-amendments-to-implement-clean-industry-bonus-reforms): * Consultation document * Website link consultation document * CfD STCs with tracked changes * CfD Generic Agreement * CfD Phase 1 Apportioned Metering Agreement * CfD Phase 2 Apportioned Metering Agreement * CfD Phase 3 Apportioned Metering Agreement * CfD Phase 1 Single Metering Agreement * CfD Phase 2 Single Metering Agreement * CfD Phase 3 Single Metering Agreement * CfD Private Network Agreement * CfD Unincorporated Joint Venture Agreement