Registration for Third UK CfD Round Opens
The company registration process for the third allocation round of the UK Contracts for Difference (CfD) has opened.
According to the National Grid, registration is an essential pre-application activity and parties wishing to apply for a CfD need to first complete and submit a registration form, preferably before the application window opens.
The third CfD allocation round is expected to commence on 29 May, as announced by the UK Department for Business, Energy & Industrial Strategy (BEIS).
At the end of last year, BEIS issued a GBP 60 million draft budget proposal for the new round that will be awarded for less established technologies, such as offshore wind, remote island wind, tidal and wave technologies.
The final budget notice will be issued no later than ten working days before the commencement of the allocation round.
BEIS plans to award the budget proceedings for the periods 2023-2024 and 2024-2025, with 6GW of capacity due to be allocated.
The UK has committed to allocating GBP 557 million to support bi-annual CfD auctions for offshore wind and remote island wind, beginning from this year’s round. The next round is scheduled for 2021 and every two years or so from then on. Depending on the price achieved, the auctions are expected to deliver up to 2GW of offshore wind each year in the 2020s.