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DESNZ consults on proposed CfD Sustainable Industry Reward from AR7

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On Thursday 16 November, DESNZ published a consultation on its proposal to introduce a Contracts for Difference (CfD) Sustainable Industry Reward (SIR) from Allocation Round 7 (AR7) onwards. It noted that following feedback to its April 2023 call for evidence on the potential introduction of non-price factors into the CfD auction, it has decided to put forward more refined ideas for consultation and that going forward non-price factors will be referred to as the CfD SIR. The CfD SIR aims to help accelerate deployment of low carbon electricity generation, specifically offshore and floating offshore wind, by addressing some recent challenges identified by the industry. It is considered that the CfD SIR could provide greater revenue support through the CfD to projects that take meaningful action to increase the economic, environmental and social sustainability of offshore wind and floating offshore wind deployment. The consultation outlines how the CfD SIR could operate, with Part 1 proposing a model to deliver the CfD SIR and Part 2 proposing the type of factors that could be valued under the CfD SIR. Responses are requested by 11 January 2024.