UK seeks overhaul of CfD regime

The UK Government is considering changes to the country's Contracts for Difference regime to include 'non-price factors' in companies' bids for support.

Graham Stuart, minister of state for energy security and net zero, said today that major reform to the CfD regime could help drive further investment in UK renewable energy deployment and improve energy security.

The Government is seeking views on changes to CfDs that could include factors such as supply chain sustainability, addressing skills gaps and how projects support grid flexibility. CfDs have been used in the UK between 2015 and 2022.

Stuart said: "Our flagship Contracts for Difference scheme has been hugely successful in supporting British low-carbon electricity generation, while also driving down costs for the benefit of consumers. But we want to go further to ensure we maximise the scheme’s potential to improve energy security and ensure renewable energy developers can make the necessary investment in supply chains and innovation, which will ultimately make for a stronger sector and help our economy to grow."

The consultation runs until 22nd May 2023.

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