CfD reforms to unlock faster renewables growth

Industry leaders have welcomed reforms to the Contracts for Difference (CfD) scheme aimed at accelerating progress towards the Government’s clean power targets.

The changes include extending the contract length from 15 years to 20 years and a new budget-setting process.

RenewableUK said the changes will boost the attractiveness of new UK projects at a time of intense international competition for private investment and mitigate the risk of significant budget underspend seen in previous years.

The reforms will also allow unconsented fixed-bottom offshore wind projects to bid into the auction for the first time.

SmartestEnergy’s Business Development Manager, James Clark, commented: "The reforms come ahead of a critical auction round. With significant capacity needed to stay on track for 2030 clean power targets, it’s encouraging to see the CfD scheme evolve to address the current challenges. Greater clarity and flexibility will be key to unlocking investment and accelerating project delivery."