BEIS Sets Out New CfD Rules, Caps Phased OWF Projects at 1.5GW

The UK government has set a cap of 1.5GW for phased offshore wind projects in the allocation of Contracts for Difference (CfDs), starting from the allocation round due to begin on 3 April.

Namely, the new rules oblige the developers who plan to develop their offshore wind projects in phases to install no more than 1,500MW of capacity after all project phases are completed.

Also, the first phase must represent at least 25% of the project’s total capacity after all phases are completed.

Furthermore, the first phase of the projects proposed in the second round needs to be completed by 31 March 2023, with the last phase commissioned no later than 2 years after the first one had went online.

In 2016, the government proposed changes to the Contracts for Difference and the CfD Standard Terms Regulations, which will apply to future CfD allocation rounds, including the forthcoming second allocation round.

On 8 February, the UK Department for Business, Energy & Industrial Strategy (BEIS) released draft allocation framework for the 2017 round.

The Contracts for Difference Regulations 2017 have now been laid before the UK Parliament and will come into force on 1 March 2017.

In the Budget 2016, the UK government has set aside up to GBP 730 million (approx. EUR 929 million) of support under the Contracts for Difference framework for offshore wind and other less established renewable generation technologies for projects commissioning in the period 2021-2026. Of the total amount, GBP 290 million has been earmarked for the first auction.

Offshore WIND Staff