Contracts for Difference (CfD): proposals for changes to supply chain plans and CfD delivery

In preparation for the fourth Allocation Round (AR4) we consulted on a range of proposed amendments to the Contracts for Difference (CfD), including ways to strengthen the supply chain process.

We are now proposing further amendments to:

• the supply chain plan policy, designed to strengthen the renewable energy supply chains and keep the policy aligned with government strategies on net zero
• some regulatory aspects of wider CfD policy in preparation for the fifth allocation round

This consultation invites views on:

• the pass threshold for the supply chain plan questionnaire
• the nature of questions in the supply chain plan questionnaire
• introducing interviews as part of the supply chain plan application process
• extending supply chain policy to emerging technologies, starting with all floating offshore wind projects
• changes to the validity period of a supply chain plan statement of approval
• strengthening the non-delivery disincentive
• amending Regulation 51(10)(c) of the CfD Allocation Regulations to align with valuation change introduced for Allocation Round 4

We welcome responses from anyone but expect it to be of particular interest to:

• those considering developing new low carbon energy projects in Great Britain (GB)
• businesses involved in low carbon electricity generation supply chains
• electricity traders and suppliers
• consumer and environmental groups with an interest in the electricity sector

As well as this consultation, please also consider responding to our call for evidence on the same topic which closes on 29 April 2022.

See the BEIS consultation privacy notice.