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Views sought on proposed contract changes for CfD AR6

Renewable Energy

On Tuesday 19 December, DESNZ issued a consultation on several proposed changes to the Standard Terms and Conditions (STCs) and the Private Network (PN) Agreement for Allocation Round 6 (AR6) of the Contracts for Difference (CfD) scheme, which is scheduled to open in March 2024. DESNZ noted that the aim of the consultation is to ensure the CfD contract continues to function as intended and reflects current government policy. Views are sought on the proposed changes which look to strengthen the Know Your Customer checks in the CfD STCs; to amend the CfD PN Agreement to ensure that generators that directly supply offshore oil and gas facilities are ineligible for that Agreement from AR6; to adjust the Change Control Procedure in Annex 2 of the STCs to introduce a revised threshold; and to amend the definition of Milestone Delivery Date (MDD). DESNZ said that it is also seeking views on how the 18-month MDD has been operating in practice to inform its thinking on whether changes may be needed for future allocation rounds. Responses are requested by 30 January 2024.