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CfD Consultation outcome and new CfD Supply Chain Plan consultation

26 November 2020

BEIS have announced this week the proposed changes to the Allocation Round 4 Contract for Difference following on from their consultation exercise earlier in the year. This includes a number of measures which will support the deployment of floating offshore wind in the UK.

This consultation response can be viewed here:

The government response confirms the government’s decision on implementing a series of amendments to the scheme ahead of Allocation Round 4, including:
introduction of a third, bottom fixed offshore wind-only pot in next year’s allocation round (floating wind now in Pot 2 and does not have to compete with fixed wind)
introduction of separation definition and administrative strike price for floating offshore wind projects – 45m water depth instead of the previously proposed 60m with future ASP yet to be set
exclusion of coal-to-biomass conversion projects from future CfD allocation rounds
extension of the negative pricing rule for future CfD contracts so that CfD generators are not paid when ‘day ahead’ electricity market prices are negative 
strengthening the existing Supply Chain Plan (SCP) process (new consultation see below)
introduction of a series of further, technical changes to the operation of CfD allocation rounds
Extending delivery years up to end of March 2035

They have also introduced a new consultation exercise on proposed changes to the Supply Chain Plan aspect of the CfD process. These new consultation documents can be viewed using this link