CfD Stakeholder Bulletin — 14 December 2022
Summary
DESNZ published Allocation Round 5 parameters and a consultation on future CfD rounds. AR5 opens March 2023 with pot structure, Administrative Strike Prices, and delivery years now confirmed. The consultation on AR6 and beyond closes 7 February 2023.
Why it matters
This confirms the mechanism that determines revenue streams for renewable generators over 15-year contracts, directly affecting project viability and investment decisions. The consultation signals potential structural changes to the CfD scheme beyond AR5, creating uncertainty for developers planning projects in later rounds.
Key facts
- •AR5 opens March 2023
- •Final Budget Notice published March 2023
- •AR6 consultation closes 7 February 2023
- •Documents include pot structure, Administrative Strike Prices, and delivery years
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 14 December 2022 Government has published key Allocation Round 5 documents and a Consultation on Future CfD rounds The government has today published key documents relating to the Contracts for Difference Allocation Round 5 (AR5) and a consultation on the future of the Contracts for Difference scheme. You can find out more about the publications here. AR5 is due to open in March 2023. Documents are being published today to provide industry and potential AR5 applicants with key information ahead of the round opening in March 2023. The documents published today are: • AR5 Core Parameters - confirms the pot structure, Administrative Strike Prices and delivery years for AR5. The final Budget Notice will be published in March 2023. • Draft Allocation Framework - sets out the rules and eligibility requirements for AR5. • Administrative Strike Price Methodology Note - explains how the Administrative Strike Prices are determined. • Consultation on the future of the CfD scheme - invites views on potential amendments for Allocation Round 6 (AR6) and beyond. The consultation will be open until 07 February 2023. 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.