From October 2014, renewable energy projects will compete for a budget of over £200 million a year as part of the first allocation round for the new Contracts for Difference (CfD). The CfD budget will be split between the more ‘established’ technologies, like onshore wind and solar, and ‘less established’ technologies like offshore wind. This announcement will be of great interest to developers that are intending to participate in the first allocation round, scheduled for October 2014.
The figures (expressed in 2011/12 £ figures) are £50m for the established pot, and £155m for the less-established pot. These amounts are spread across all delivery years listed in table 1 below (i.e. they are not separate and additional amounts for each delivery year). The rationale for this is that developers can bid in this allocation round for a project to achieve commissioning in any delivery year up to 2018/19, and as such, the support for that project comes out of this year’s pot.
Table 1: CFD budget release for 2014 allocation round (figures are total support payments available in a given year)
Click here to view table.
As it stands, there is no budget for biomass conversions in this application round, unless one of the final investment decision enabling (FIDE) projects does not go ahead.
Use of Maxima or Minima (i.e. the principle of the use of caps (maxima) and floors (minima) for particular technologies.
The Department of Energy & Climate Change (DECC) have proposed that there will be a minimum of 10MW for wave and tidal stream technologies (out of the 100MW reserved budget for this technology for the duration of the first Delivery Plan period). There are no maxima thresholds for any technology.