CfD Stakeholder Bulletin — 6 March 2024
Summary
Government sets £1 billion budget for CfD Allocation Round 6, the largest allocation round budget to date. The budget was announced in the Chancellor's Spring Budget on 6 March 2024. AR6 will support renewable energy projects through strike price guarantees.
Why it matters
This doubles down on administrative price-setting for renewables rather than market pricing. The larger budget signals government confidence in CfD economics but also locks in more long-term price guarantees that socialise technology risks across consumers.
Key facts
- •£1 billion budget for AR6
- •Largest CfD allocation round budget to date
- •Announced 6 March 2024 Spring Budget
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 6 March 2024 AR6 budget announced The Government has confirmed a budget of over £1 billion for Allocation Round 6 (AR6) of the Contracts for Difference (CfD) scheme. The budget was announced as part of the Chancellor’s Spring Budget this afternoon. It is the largest budget to be set for a CfD allocation round and will help to ensure that the scheme continues to support delivery of the UK’s ambitious decarbonisation commitments. • Visit the CfD microsite for further details. General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contract 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 Energy Security and Net Zero (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contract 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 ContractsForDifference@energysecurity.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 ContractsForDifference@energysecurity.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.