Consultation outcome

Contracts for Difference (CfD): proposals for changes to supply chain plans and CfD delivery

• From: Department for Business, Energy & Industrial Strategy
• Published: 4 February 2022
• Last updated: 3 May 2022 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

Applies to England, Scotland and Wales

This consultation has concluded

Read the full outcome

Proposed amendments to Supply Chain Plans and CfD delivery: government response to consultation

PDF, 229 KB, 21 pages

Detail of outcome

The government response confirms the government’s decision on implementing a series of amendments to the scheme ahead of Allocation Round 5, including:

• requiring Supply Chain Plans from all Floating Offshore Wind projects
• shortening the validity period of a Supply Chain Plan Statement of Approval from 12 months to 9 months
• introducing an ‘Interview with applicants’ stage into the Supply Chain Plan process
• raising the standard of Supply Chain Plans
• creating a more precise question template
• strengthening the Non-Delivery Disincentive mechanism
• amending the CfD Allocation regulations to align to a change introduced for Allocation Round 4

We have published a new consultation on Updating the Allocation Round 5 Supply Chain Plan questionnaire which closes on 14 June 2022.

Detail of feedback received

We received 41 responses from a wide range of stakeholders, including:

• renewable electricity developers and associated supply chain firms
• trade associations and bodies
• suppliers
• research and public bodies
• investment bodies
• devolved governments

---

Original consultation

Summary

We're seeking views on further amendments to the Contracts for Difference scheme in relation to supply chain plans, and some regulatory aspects of wider CfD policy in preparation for the next allocation round.

This consultation ran from
10am on 4 February 2022 to 11:45pm on 15 March 2022

Consultation description

In preparation for the fourth Allocation Round (AR4) we consulted on a range of proposed amendments to the Contracts for Difference (CfD), including ways to strengthen the supply chain process.

We are now proposing further amendments to:

• the supply chain plan policy, designed to strengthen the renewable energy supply chains and keep the policy aligned with government strategies on net zero
• some regulatory aspects of wider CfD policy in preparation for the fifth allocation round

This consultation invites views on:

• the pass threshold for the supply chain plan questionnaire
• the nature of questions in the supply chain plan questionnaire
• introducing interviews as part of the supply chain plan application process
• extending supply chain policy to emerging technologies, starting with all floating offshore wind projects
• changes to the validity period of a supply chain plan statement of approval
• strengthening the non-delivery disincentive
• amending Regulation 51(10)(c) of the CfD Allocation Regulations to align with valuation change introduced for Allocation Round 4

We welcome responses from anyone but expect it to be of particular interest to:

• those considering developing new low carbon energy projects in Great Britain (GB)
• businesses involved in low carbon electricity generation supply chains
• electricity traders and suppliers
• consumer and environmental groups with an interest in the electricity sector

Call for evidence on changes to supply chain plans

As well as this consultation, please also consider responding to our call for evidence on the same topic which closes on 29 April 2022.

See the BEIS consultation privacy notice.

Documents

Consultation on changes to supply chain plans and CfD delivery

PDF, 623 KB, 22 pages

Published 4 February 2022
Last updated 3 May 2022 + show all updates

1. 3 May 2022

   Government response published, alongside a new consultation on the Allocation Round 5 Supply Chain Plan questionnaire.

2. 4 February 2022

   First published.