EMR Rolls - Government Publishes CfD Terms

A detailed draft of the contract that Government will offer investors in low-carbon energy generation was published today. At the same time, DECC released further information on the methodology that will be applied in allocating the new contracts for difference (CfDs) – the subsidy structure that the Government is promoting as the most efficient way to provide long-term support for all forms of low carbon generation – including nuclear, renewables and carbon capture & storage.

The proposed CfD contract terms and the allocation methodology are open to consultation, with the Government hoping to finalise proposals by the end of this year. In the meantime, the allocation process looks like this: