The UK has set the budget for the upcoming Contracts for Difference (CfD) auction for new renewables at £205 million.
CfDs are already in place for 27GW of low carbon capacity. The fifth round includes £170 million for established technologies – the first time offshore wind and remote island wind has been in the ‘established’ pot (pot 1). Pot 2 will have £35 million for emerging technologies such as geothermal and floating offshore wind, as well as a £10 million ring-fenced budget for tidal stream technologies.
The CfD round is scheduled to open to applications on 30 March with results to be announced in late summer/early autumn 2023. The government has confirmed a technical change to the AR5 contract, confirming that flexibility to delay contract start dates should not be used by generators to benefit from higher prices on the wholesale market.
There are currently 52 CfDs with Scottish projects – 30% of total CfD projects and 25% of total capacity.  In Wales, the scheme has so far awarded contracts to nine projects, totalling around 260MW.
Contracts for Difference are 15-year private law contracts between renewable electricity generators and the Low Carbon Contracts Company (LCCC), a government-owned company that manages CfDs at arm’s length from government.