United Kingdom

United Kingdom

UK accelerates CfD subsidy schedule

UK: The UK government has pushed forward the schedule for the implementation of its new subsidy scheme, Contracts for Difference (CfD).

The Walney Extension has already been approved for the subsidy
The Walney Extension has already been approved for the subsidy

The bid window will now open on 29 January, as opposed to the previously announced date of 18 February. It will close on 4 February, rather than 24 February as was reported originally.

The winners of contracts under the subsidy scheme will now be notified on 26 February and contracts will be signed on 27 March, rather than 17 April.

Energy regulator Ofgem managed to settle appeals with companies that had failed to meet the eligibility faster than previously expected. As such, the Low Carbon Contracts Company - which is responsible for administrating the scheme - has been able to accelerate the schedule.

The CfD system will see generators receiving a top-up payment when the wholesale electricity price is below a pre-agreed 'strike price' and paying money back if the price rises above it.

For wind projects, the guaranteed prices will be £95/MWh for onshore in 2015 and offshore sites will receive £155/MWh. The prices will progressively decrease to £90/MWh and £140/MWh respectively by 2018/19.

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