Combined Heat & Power, District Heating & Cooling, Demand Side Services, Energy Efficiency

Contracts for Difference (CfD) Regulations have been approved

13 July 2018

The draft ‘Contracts for Difference (Miscellaneous Amendments) Regulations 2018’ Statutory Instrument (SI) has been approved by the House of Commons, having already been approved by the House of Lords, and will now become law.

Among other changes, this SI tightens efficiency requirements for new CHP plants. The Government’s consultation response in June proposed to require all dedicated biomass with CHP and energy from waste CHP schemes applying for new CfD contracts to have a minimum 70% overall efficiency, primary energy saving of 10% and heat efficiency of 10%. These standards will apply to all plants, regardless of size. These standards will be introduced in the updated CHPQA, which the SI makes reference to.

The SI also seeks to include ‘remote island wind’ in future Contracts for Difference auctions.

ADE Newsletter