Consultation on amending the CFD contract and regulations

The CFD scheme was created to provide long-term price stabilisation to incentivise investment in low carbon generation. This consultation proposes a series of amendments to the CFD contract and CFD regulations, intended to apply to future CFD allocation rounds.

The proposed changes relate to:

• Preventing cumulation of state aid
• The definition of foreseeable change in law
• Electricity storage
• A number of other minor and technical changes

Alongside the consultation document, indicative versions of the CFD Agreement and the CFD Standard Terms and Conditions, which incorporate the proposed changes, have also been published.

Generators who are allocated a CFD will sign a CFD Agreement, which then incorporate the CFD Standard Terms and Conditions. The CFD Agreement is a bespoke document including all of the Project-specific information, including the estimated installed capacity, the applicable Strike Price and the particulars of the generator to which the Agreement applies.

The amendments outlined in the indicative version of the CFD Agreement for consultation should be considered to also apply to CFD (Phase 1) (Single) Agreement, CFD (Phase 2), (Single) Agreement, CFD (Phase 3) (Single) Agreement, CFD (Phase 1) (Apportioned) Agreement, CFD (Phase 2) (Apportioned) Agreement, CFD (Phase 3) (Apportioned) Agreement, CFD Private Network Agreement and CFD (UJV) Agreement.

We are also publishing a version of the CFD Agreement for use by unincorporated joint ventures (UJVs), the CFD (UJV) Agreement, following consultation in March 2015.