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

Contracts for Difference proposed amendments Government response and Consultation launched

31 August 2018

On Thursday 30 August, the Department for Business, Energy and Industrial Strategy (BEIS) published the second part of their response to the proposed amendments to the Contracts for Difference Scheme for renewable electricity generation. As part of this, they also launched a new consultation to invite views on the way decisions from the initial decision will be implemented into the CfD scheme, as well as a small number of new proposals addressing issues that emerged from the December 2017 consultation, and proposed minor and technical contract changes. 

The Government responded to the consultation as Part A in June 2018. Part B includes:

  • a summary of the responses received during the consultation on remote island wind, mitigating budgetary risk, Advanced Conversion Technologies, Combined Heat and Power, greenhouse gas criteria for solid and gaseous biomass and changes to improve the operation and clarity of the CfDscheme (to the extent they were not covered in the Part A response)
  • the government’s decisions on those matters that it consulted on in December 2017 in light of those responses

Read the Government Response to the consultation on proposed amendments to the scheme - Part B here

Further consultation: proposals for changes to the CfD contract

BEIS are now seeking further views on how decisions on matters covered in the December 2017 consultation will be implemented into the CfD scheme. Comments may be made on the revised drafts of the CfD Standard Terms and Conditions and the CfDgeneric Agreement published alongside this document: the proposed amendments are shown as tracked changes in these documents.

BEIS are seeking views on new proposals addressing associated issues that emerged during the original consultation, and on proposed minor and technical contract changes to ensure that the contract terms remain effective. These include:

  • the way in which reference price forecasts are used during the allocation process
  • the treatment of those technologies which are eligible to participate in the CfD scheme regardless of whether they deploy with Combined Heat and Power (CHP) (i.e. the ‘optional CHP’ technologies, currently advanced conversion technologies, anaerobic digestion and geothermal)
  • Issue 7 of the CHP Quality Assurance (CHPQA) Standard and Guidance Note 44 giving effect to new increased efficiency requirements for CHPprojects. New versions of both these documents are available on this page, with changes marked
  • Brexit-related changes to ensure that the CfD contract functions effectively after the UK has left the European Union
  • a series of proposed minor and technical changes to ensure that the contract terms remain effective

The consultation will close on 10 October 2018

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