CfD Stakeholder Bulletin — June 2018
Summary
DESNZ published Part A of its response to the December 2017 CfD consultation, implementing three minor changes: defining remote island wind as eligible for Pot 2, updating combined heat and power requirements, and revising the waste fuel definition. A draft Statutory Instrument was laid before Parliament to implement these changes.
Why it matters
These are parameter adjustments rather than structural reforms. Remote island wind gains access to less competitive auctions, creating a carve-out that benefits a narrow geographic segment while maintaining the broader exclusion of onshore wind from CfD support.
Key facts
- •Remote island wind redefined to compete in Pot 2 (less competitive technology pot)
- •Changes to combined heat and power project requirements
- •Revised waste fuel definition for CfD eligibility
- •Part B response covering wider proposals delayed to later in 2018
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 6 June 2018 Government response to December 2017 consultation on proposed amendments to the scheme The Department has today published Part A of the government response to the consultation published in December 2017 on the Contracts for Difference (CfD) scheme. It deals mainly with: • The definition of remote island wind, to differentiate it from other onshore wind so that it can compete in future Pot 2 CfD allocation rounds • The requirements applied to new combined heat and power projects • A change to the definition of waste used in the CfD scheme To implement policy decisions set out in the government response, a draft Statutory Instrument, which will amend two sets of regulations underpinning the operation of the CfD scheme, has also been laid before Parliament today. Part A of the government response is available at www.gov.uk/government/consultations/contracts-for-difference-cfd-proposed-amendments- to-the-scheme The draft Statutory Instrument is available at www.legislation.gov.uk/ukdsi/2018/9780111170175/contents A further, Part B to the government response, which deals with the wider range of proposals in the consultation, will be published later in the year. The government also intends to consult on the proposed contractual amendments that some of these proposed changes require, as well as additional detailed contract changes to ensure that the contract terms remain effective, later in the year. 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 Business, Energy and Industrial Strategy (BEIS) (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’ (or, if the receiving e-mail you use is different to the one you send e-mail from, including 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 the list until (a) you withdraw your consent to opt in, (b) the scheme closes without any successor, (c) we receive reports your e-mail address is no longer operational, or (d) you do not respond to a periodic request from us to reconfirm your desire to opt in.