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Home » Contracts for Difference Scheme (CfD) to double capacity of renewables and expand technology supported.

UK Energy Ministry BEIS will allocate supports for up to 12GW of new renewables projects at its Contracts for Difference Round Four (CfD4) auction which will open in late 2021.

The round will feature three pots for different technologies, which will all compete for 15-year government subsidies. The 12GW capacity is over twice as large as 2019’s 5.8GW CfD3.

Pot 1 will comprise established technologies including onshore wind and solar – marking the first time since 2015 these two technologies can bid for supports.

Pot 2 covers less-established technologies – including floating offshore wind, Advanced Conversion Technologies and tidal stream.

Offshore wind will have its own standalone Pot 3, in line with plans suggested during consultations on the round earlier this year.

The government has set out its next steps towards a green industrial revolution with plans for the next round of its flagship renewables support scheme.

The fourth round of the Contracts for Difference (CfD) scheme – to open in late 2021 – will aim to double the capacity of renewable energy compared to the last round and expand the number of technologies supported, with offshore wind, onshore wind, solar, tidal and floating offshore wind projects all eligible to bid.

This will be coupled with a new consultation looking at the supply chain and ways to support more jobs and private investment by increasing the competitiveness of UK manufacturers. It will mean the country can reap the rewards of clean energy following the Prime Minister’s Ten Point Plan for a Green Industrial Revolution published during November.