The UK Department of Energy and Climate Change (DECC) has proposed amending the Contracts for Difference (CfD) Allocation Regulations set in 2014 to extend the delivery years for projects to 31 March 2026.
Under the current regulations, allocation rounds and their associated budgets can only be made available for projects commissioning by 31 March 2020.
By amending the regulations, the UK Government could undertake allocation rounds for projects commissioning after 31 March 2020 and provide investors with long-term foresight of the delivery framework, according to DECC.
In the Budget 2016 , the UK Government has set aside up to £730 million (approx. €929 million) of support under the Contracts for Difference framework for offshore wind and other less established renewable generation technologies for projects commissioning in the period 2021-2026.
“If we did not make this amendment, we would be unable to open up allocation rounds for delivery years after 31 March 2020,” DECC said.
DECC has opened consultation period on the proposed amendment, which closes on 8 August 2016.