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ARTICLE · 15 FEBRUARY 2024

Allocation Round 7 (AR7): A Call For Views And Evidence

Gowling WLG
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The Department for Energy Security and Net Zero (DESNZ) has recently published proposals for reforms to the Contracts for Difference (CfD) scheme, to take effect for Allocation Round 7...

United KingdomEnergy and Natural Resources
Russell Evans
Russell Evans
James Stanier
James Stanier
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The Department for Energy Security and Net Zero (DESNZ) has recently published proposals for reforms to the Contracts for Difference (CfD) scheme, to take effect for Allocation Round 7, which is expected to open for applications in March 2025.

These are the proposals for Allocation Round 7:

Repowering of onshore wind

The Government is seeking to incentivise the full repowering of existing onshore wind assets under the scheme. The Government sees numerous benefits to full repowering, such as supporting decarbonisation of the power system in a timely manner and preventing the loss of low carbon electricity supply.

The Government also proposes the option of forward bidding under AR7 for repowering projects, which would allow generators to apply for a CfD while the wind farm is still operating – thereby avoiding the costs and delays associated with decommissioning before applying for a CfD (under the current CfD framework, an application cannot be made for a CfD

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