CfD Stakeholder Bulletin — 4 February 2022
Summary
DESNZ launched a consultation on technical changes to the CfD scheme for Allocation Round 5, focusing on strengthening Supply Chain Plan requirements and wider regulatory aspects. The consultation closes on 15 March 2022, with a parallel call for evidence on longer-term supply chain policy closing on 29 April 2022. This represents preparation for the next CfD round rather than immediate rule changes.
Why it matters
The focus on supply chain requirements signals tighter local content mandates for CfD projects, potentially increasing costs for developers while supporting domestic manufacturing. As such, this shifts CfD from a pure price discovery mechanism toward industrial policy, creating tension between lowest-cost procurement and strategic objectives.
Key facts
- •Consultation closes 15 March 2022
- •Call for evidence closes 29 April 2022
- •Targets Allocation Round 5 preparations
- •Q&A event scheduled for 9 February 2022
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 4 February 2022 Consultation and call for evidence published today The Department for Business, Energy and Industrial Strategy (BEIS) has today published a consultation on technical changes to the Contracts for Difference (CfD) scheme as it begins policy work in preparation for Allocation Round 5. The consultation covers proposals to strengthen Supply Chain Plan policy and delivery in line with the government’s priorities in the Net Zero Strategy. The consultation also includes proposals on changes to some regulatory aspects of wider CfD policy. In parallel with the consultation, BEIS has launched a call for evidence on longer-term ideas for the Supply Chain Plan process. • Consultation: Further information and details of how to respond • Call for evidence: Further information and details of how to respond • Press release The consultation will close on 15 March 2022. The call for evidence will close on 29 April 2022. Reminder: Online Q&A event • Date: Wednesday 9 February 2022, 10am–11.30am As previously publicised, BEIS will host an online Q&A event on the above date to answer any questions you may have about the consultation and call for evidence that have been published today. If you have not yet registered but would like to attend, please note that registration closes at 12pm on Tuesday 8 February 2022. • Register your place now You may submit questions in advance of the event. Please submit advance questions to BEISContractsForDifference@beis.gov.uk by 11am on Tuesday 8 February 2022. 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.