Consultation On Contracts For Difference: GB Government-proposed Changes For AR7

The Contracts for Difference scheme (CfD) is a mechanism by which the government supports new low carbon electricity generation projects in Great Britain. The government has held six allocation rounds in which renewable project developers apply to the scheme, with allocation rounds now being held annually (the first four being held approximately every two years).

The government recently ran a consultation on potential changes to the seventh allocation round (AR7), allowing industry and investors the opportunity to comment on changes to the CfD. In this Insight, we review the proposed changes under discussion. The changes will take effect in time for AR7 opening later this year.