What next for the CfD? Five simple (ish) reforms that can be done ahead of AR7 opening next Spring to ensure we achieve the massive step change required to meet the stretching 2030 targets. In a nutshell: 1) Revise the parameters to ensure more market reflective - namely reference prices and load factors; 2) Provide clarity by setting clear capacity targets for future auctions aligning with 2030 targets; 3) Increase length of the contract from 15 to at least 20 years; 4) Provide delivery year flexibility (e.g. to help mitigate impacts of delayed grid build out, supply chain, construction risk) to help lower risk -> lower strike prices; 5) Progress no regrets proposals in the AR7 & Future Allocation Rounds to unlock new capacity…(ok there might be few more asks in this bit..) Simples!
𝐑𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞𝐔𝐊 𝐬𝐞𝐭𝐬 𝐨𝐮𝐭 𝐫𝐞𝐟𝐨𝐫𝐦𝐬 𝐭𝐨 𝐜𝐥𝐞𝐚𝐧 𝐞𝐧𝐞𝐫𝐠𝐲 𝐚𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐭𝐨 𝐚𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐞 𝐫𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞 𝐞𝐧𝐞𝐫𝐠𝐲 𝐝𝐞𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 - RenewableUK Media Release RenewableUK has published a new report outlining five simple, evolutionary reforms to the current allocation process for the Government’s Contracts for Difference (CfD) scheme, to achieve a revolutionary step-change in the country’s renewable energy deployment: ➡ https://lnkd.in/eGrvBmCg The report identifies the need for the parameters of the auction to reflect the realities of the market more accurately, including realistic reference prices and load factors. It also urges the Government to provide long-term certainty to developers and the supply chain by setting specific targets for each technology in future auctions, and increasing the length of CfD contracts from 15 to 20 years to reflect the longer lifecycle of modern projects 🗓 Alongside this, the report suggests lowering risks by offering more flexibility on which year developers can deliver their projects, as well as continuing to progress ongoing CfD reforms outlined in the Government’s AR7 & Future Allocation Rounds consultation 📊 RenewableUK CEO Dan McGrail comments in our latest press release 👇 https://lnkd.in/eNQcXq2H “𝘛𝘩𝘦 𝘯𝘦𝘸 𝘎𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵 𝘩𝘢𝘴 𝘴𝘦𝘵 𝘢𝘮𝘣𝘪𝘵𝘪𝘰𝘶𝘴 𝘵𝘢𝘳𝘨𝘦𝘵𝘴 𝘧𝘰𝘳 𝘳𝘦𝘯𝘦𝘸𝘢𝘣𝘭𝘦 𝘦𝘯𝘦𝘳𝘨𝘺, 𝘦𝘹𝘵𝘦𝘯𝘥𝘪𝘯𝘨 𝘢𝘤𝘳𝘰𝘴𝘴 𝘧𝘪𝘹𝘦𝘥 𝘣𝘰𝘵𝘵𝘰𝘮 𝘢𝘯𝘥 𝘧𝘭𝘰𝘢𝘵𝘪𝘯𝘨 𝘰𝘧𝘧𝘴𝘩𝘰𝘳𝘦 𝘸𝘪𝘯𝘥, 𝘰𝘯𝘴𝘩𝘰𝘳𝘦 𝘸𝘪𝘯𝘥, 𝘢𝘯𝘥 𝘴𝘰𝘭𝘢𝘳 𝘗𝘝. 𝘛𝘩𝘦 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘪𝘴 𝘳𝘦𝘢𝘥𝘺 𝘵𝘰 𝘸𝘰𝘳𝘬 𝘸𝘪𝘵𝘩 𝘎𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵 𝘵𝘰 𝘢𝘤𝘩𝘪𝘦𝘷𝘦 𝘵𝘩𝘦𝘴𝘦, 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘳𝘦𝘧𝘰𝘳𝘮𝘴 𝘴𝘦𝘵 𝘰𝘶𝘵 𝘪𝘯 𝘵𝘩𝘪𝘴 𝘯𝘦𝘸 𝘳𝘦𝘱𝘰𝘳𝘵 𝘰𝘶𝘵𝘭𝘪𝘯𝘦 𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘢𝘭 𝘴𝘵𝘦𝘱𝘴 𝘵𝘰 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘭𝘰𝘯𝘨-𝘵𝘦𝘳𝘮 𝘢𝘴𝘴𝘶𝘳𝘢𝘯𝘤𝘦 𝘵𝘰 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳𝘴 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘴𝘶𝘱𝘱𝘭𝘺 𝘤𝘩𝘢𝘪𝘯, 𝘸𝘩𝘪𝘭𝘴𝘵 𝘣𝘶𝘪𝘭𝘥𝘪𝘯𝘨 𝘰𝘯 𝘳𝘦𝘵𝘶𝘳𝘯𝘪𝘯𝘨 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳 𝘤𝘰𝘯𝘧𝘪𝘥𝘦𝘯𝘤𝘦 𝘧𝘰𝘭𝘭𝘰𝘸𝘪𝘯𝘨 𝘵𝘩𝘪𝘴 𝘺𝘦𝘢𝘳’𝘴 𝘦𝘯𝘤𝘰𝘶𝘳𝘢𝘨𝘪𝘯𝘨 𝘢𝘶𝘤𝘵𝘪𝘰𝘯 𝘳𝘦𝘴𝘶𝘭𝘵𝘴. “𝘚𝘦𝘷𝘦𝘳𝘢𝘭 𝘰𝘧 𝘵𝘩𝘦 𝘱𝘳𝘰𝘱𝘰𝘴𝘢𝘭𝘴 𝘤𝘢𝘯 𝘣𝘦 𝘪𝘮𝘱𝘭𝘦𝘮𝘦𝘯𝘵𝘦𝘥 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘮𝘢𝘫𝘰𝘳 𝘭𝘦𝘨𝘪𝘴𝘭𝘢𝘵𝘪𝘷𝘦 𝘳𝘦𝘧𝘰𝘳𝘮 𝘪𝘯 𝘵𝘪𝘮𝘦 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘯𝘦𝘹𝘵 𝘢𝘶𝘤𝘵𝘪𝘰𝘯 𝘳𝘰𝘶𝘯𝘥 𝘪𝘯 2025, 𝘳𝘦𝘥𝘶𝘤𝘪𝘯𝘨 𝘤𝘰𝘴𝘵𝘴 𝘸𝘩𝘪𝘭𝘴𝘵 𝘦𝘯𝘴𝘶𝘳𝘪𝘯𝘨 𝘸𝘦 𝘱𝘳𝘰𝘤𝘶𝘳𝘦 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘪𝘯𝘨 𝘭𝘦𝘷𝘦𝘭𝘴 𝘰𝘧 𝘯𝘦𝘸 𝘳𝘦𝘯𝘦𝘸𝘢𝘣𝘭𝘦 𝘦𝘯𝘦𝘳𝘨𝘺 𝘢𝘴 𝘸𝘦 𝘭𝘰𝘰𝘬 𝘵𝘰𝘸𝘢𝘳𝘥𝘴 2030 𝘢𝘯𝘥 𝘣𝘦𝘺𝘰𝘯𝘥 𝘰𝘯 𝘰𝘶𝘳 𝘫𝘰𝘶𝘳𝘯𝘦𝘺 𝘵𝘰 𝘣𝘦𝘤𝘰𝘮𝘪𝘯𝘨 𝘢 𝘤𝘭𝘦𝘢𝘯 𝘦𝘯𝘦𝘳𝘨𝘺 𝘴𝘶𝘱𝘦𝘳𝘱𝘰𝘸𝘦𝘳.” #renewableenergy #report #AR6 #energymarkets #cfd #auction
