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CfD auction to go ahead as planned despite COVID-19 disruption

The CfD auction will include Pot One technologies such as solar and onshore wind.

The CfD auction will include Pot One technologies such as solar and onshore wind.

Despite disruption caused by COVID-19, the Contracts for Difference (CfD) auction will go ahead unchanged.

The Department of Business, Energy and Industrial Strategy (BEIS) launched a consultation on proposed amendments to the scheme on 2 March, designed to last for twelve weeks.

This is due to end on May 22, but there were concerns it would be pushed back given the current uncertainty. BEIS has now confirmed that it will go ahead unchanged.

In a statement released at the end of last week, it said: “Having reflected on the impacts of the current COVID-19 emergency and discussed with relevant trade associations, on balance we do not propose extending the current consultation deadline beyond this date.

“This is because in particular, the initial feedback we have had from a range of stakeholders has stressed the importance of maintaining the delivery of AR4 in 2021.”

However, BEIS has urged people to get in touch if they have concerns about responding to the consultation because of COVID-19.

There will be a series of webinars as part of the consultation period, instead of stakeholder events, due to the pandemic.

By keeping the consultation on track, BEIS hopes that the CfD allocation can go ahead as planned in 2021. It will keep dates under consideration, however, and reassess them at the end of May.

The consultation includes a potential revision of technology pots, an extension of the negative pricing rule and a relaxation of energy storage metering requirements.

The CfD auction was welcomed by the industry for including Pot One technologies such as solar and onshore wind for the first time since 2015.


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