Renewable projects will have until 27 October to submit their applications for the first round of financing, which will guarantee a set price for the electricity produced.
The Department for Energy and Climate Change (Decc) confirmed to Windpower Monthly the auction will take place in December, subject to appeals, although a specific date for the announcement of the winners is yet to be set.
For wind projects, the guaranteed prices will be £95/MWh produced onshore in 2014/15 and offshore sites will receive £155/MWh. The prices will progressively decrease to £90/MWh and £140/MWh respectively by 2018/19.
In July, the energy department announced the annual budget for the scheme of £205 million (EUR 259 million), £50 million of which is for "established technologies" such as onshore wind.
Decc believes the CfD scheme will encourage investors to commit to the renewable sector and will drive competition among projects, in a bid to lower energy prices.
Five offshore projects, including Dong Energy's 750MW Walney Extension, have already been awarded Contracts for Difference in an early, non-competitive round of funding.