The UK Government has today published its response to a consultation on introducing a CfD Sustainable Industry Reward (SIR).
The response confirms that the CfD SIR process will run for three years from Allocation Round 7 (2025) onwards as a competitive allocation for extra revenue support.
It means offshore wind developers that take steps to lower the carbon footprint in their supply chains could receive additional payments.
The SIR process will take place six months before the main CfD auction, and applicants will need to meet minimum standards to gain access.
Some key aspects of the proposed SIRs have been amended to simplify the process. The number of criteria has been reduced to two, and there are now only three questions. The criteria for SIRs will be:
- Investment in shortening supply chains in deprived areas in the UK; or
- Investment in more sustainable means of production anywhere in the world; or
- A combination of both approaches by investing in shorter supply chains in UK deprived areas and ensuring that such investment goes to more sustainable means of production.
Read the SIR consultation response.
We have been engaging heavily with our members on SIRs throughout this consultation process.
Key concerns have been the complexity of the proposed mechanism acting as a barrier to deployment and incentivising investment in supply chains overseas.
We shared these concerns in our official consultation response and are therefore pleased to see these addressed and taken seriously in the official government response.
Jay Sheppard, Project Manager, Marine Energy Wales