CfD Stakeholder Bulletin — 12 July 2023
Summary
DESNZ has barred renewable generators supplying offshore oil and gas platforms from receiving CfD payments under Private Network agreements from AR6 onwards. The decision prevents consumer bills from subsidising renewable electricity delivered directly to offshore platforms. AR6 Supply Chain Plans and guidance are now available.
Why it matters
This removes a perverse subsidy where consumers would fund renewables benefiting oil and gas operations rather than the grid or household supply. As such, it sharpens CfD eligibility criteria but does not change the fundamental structure of renewable support.
Key facts
- •Private Network CfD ineligibility applies from AR6
- •Affects renewable generators directly supplying offshore oil and gas facilities
- •AR6 Supply Chain Plans published July 2023
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 12 July 2023 Government publishes response to consultation on future CfD rounds The Government has today published a response to the December 2022 consultation on considerations for future Contracts for Difference (CfD) rounds. The response confirms the Government’s decision to make renewable electricity generators that directly supply offshore oil and gas facilities ineligible to apply for the Private Network CfD Agreement. This change, applying from the next allocation round (AR6) onwards, will prevent consumers from subsidising renewable electricity that is directly supplied to offshore platforms, ensuring that the CfD scheme continues to offer value for money. The Government response also provides updates on longer-term policy considerations beyond AR6, including phasing, repowered assets, and multi-purpose interconnectors. Read the full consultation response AR6 Supply Chain Plans and guidance now available The final Supply Chain Plans and associated guidance for AR6 have been published and may be accessed here: • AR6 Supply Chain Plans and guidance General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted into 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 BEISContractsForDifference@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 BEISContractsForDifference@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.