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Contracts for Difference (CfD): changes to Supply Chain Plans and the CfD contract

In March 2020, the government consulted on a range of proposed amendments to the Contracts for Difference (CfD) scheme ahead of the fourth Allocation Round (AR4), planned for late 2021. This consultation proposes further amendments to the scheme in relation to Supply Chain Plans and changes to the CfD contract.

The government previously sought views on whether the Supply Chain Plan policy could better encourage the growth of sustainable, efficient supply chains. The government is now proposing more detailed changes to the Supply Chain Plan policy, which are designed to increase the clarity, ambition, and measurability of developers’ commitments, and ensure that those commitments are delivered.

The government also invites views on several proposed drafting changes to the CfD contract to implement decisions taken on the following policies:

  • floating offshore wind
  • negative pricing
  • coal-to-biomass conversions
  • milestone delivery date
  • minor and technical changes to improve the operation and clarity of the contract

In addition, we’re inviting views on the government’s proposal not to extend phasing to floating offshore wind projects.

Drafts of the CfD Agreement and Standard Terms and Conditions are published alongside this consultation document showing the proposed changes underlined and highlighted in colour.

We welcome responses from anyone with an interest in these issues. We expect this consultation document will be of particular interest to:

  • those considering developing new low carbon energy projects in Great Britain (GB)
  • businesses involved in low carbon electricity generation supply chains
  • electricity traders and suppliers
  • businesses operating in the bioenergy sector
  • consumer and environmental groups with an interest in the electricity sector

See the BEIS consultation privacy notice.

Please do not send responses by post to the department at the moment as we may not be able to access them.

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