United Kingdom

United Kingdom

MPs call for CfD review

UK: A group of members of parliament (MPs) in the UK has called on the Department of Energy and Climate Change (Decc) to conduct a review into the contracts for difference (CfD) process before the next auction.

The energy and climate change committee has asked Decc to review the CfD process
The energy and climate change committee has asked Decc to review the CfD process

A report by the energy and climate change committee said a review into the CfD process should be completed by August.

It should include a look at how engagement with small players can be improved and an assessment of the pros and cons of running more frequent CfD auctions.

Infinis, an independent wind developer, told the committee in October that "the lack of a firm timetable for future [CfD] auctions is preventing us from planning our investment effectively".

The committee said the process in applying for CfDs was complex and timescales were too short, especially for smaller businesses with limited resources.

The committee said it had been told by smaller companies that the CfD process was favoured towards larger companies.

A second CfD auction is planned for October, but a budget is yet to be announced. The committee has called on Decc to quickly decide on a timetable and budget for future CfD auctions.

Last week, the UK government awarded its first competitive CfD subsidies to onshore and offshore projects, totalling 1.9GW.

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