UK Government sets out CfD auction details

The UK Government has set out further details for the next Contracts for Difference (CfD) auction. Under the scheme, companies will compete for an initial £290 million worth of contracts […]

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By Priyanka Shrestha

The UK Government has set out further details for the next Contracts for Difference (CfD) auction.

Under the scheme, companies will compete for an initial £290 million worth of contracts for renewable energy projects and be incentivised for the power they produce.

The application process for the CfD allocation round will open on 3rd April.

Eligible projects – which will include offshore wind, anaerobic digestion, biomass with CHP as well as wave, tidal and geothermal – will be able to compete for the contracts for delivery years 2021/22 and 2022/23.

The documents released by the government state the CfD bids will be ranked so the cheapest projects win contracts first, regardless of the delivery year.

Developers will be able to submit their applications by 21st April.

Last month, coal and gas projects were among the big winners in the latest Capacity Market auction.