CfD

  • Energy storage and flexibility

    Out with the old, in with the new: T-4 Capacity Market clears at record price

    On 21 February, the T-4 Capacity Market auction for Delivery Year 2026-27 cleared at a record high price of £63.00/kW/year, procuring 43,000.955MW of capacity. In this week’s 'Chart of the week', we explore the key takeaways from the auction.

  • Energy storage and flexibility

    Record renewables pipeline: will investors reconsider after UK proposes green revenue cap?

    News this week that the UK government is mulling over a cap on green generation revenues comes at a time when our research finds that the investment pipeline for electricity renewables generation is the highest it has ever been. In our Renewables Pipeline Tracker (RPT) service we analyse the growing...

  • Low carbon generation

    Head to Head: CfD vs RESS

    2022 has been busy for renewable developers in Great Britain and Ireland, with both the fourth allocation round of the Contracts for Difference (CfD) scheme and the second round of the Renewable Electricity Support Scheme (RESS) concluding this summer. In this week’s ‘Chart of the Week’, we compared the latest...

  • Low carbon generation

    BEIS confirm end-date for recognition of EU GoO imports

    In this week’s ‘Chart of the Week’, we examine the historical volume of GoOs imported for FMD and explores what impact GoO removal will have on the REGO market.

  • Low carbon generation

    CfD-accredited assets delay CfD start dates

    The media have recently published stories regarding offshore windfarms with Contracts for Difference (CfD) agreements choosing to delay the start of their CfD terms in order to take advantage of high wholesale power prices and avoid having to pay additional revenue back to the Low Carbon Contracts Company (LCCC). This...

  • Business supply and services

    A GoO-ey end? Green power import certificates poised for removal

    On 29 March, BEIS published a consultation seeking views on the removal of Feed in Tariff (FIT) and Contracts for Difference (CfD) scheme cost exemptions for green imported electricity and the recognition of EU Guarantees of Origin (GoOs) in GB altogether. Our 'Chart of the week' shows historic GoO imports...

  • Low carbon generation

    Germinating: The growth of onshore wind and solar PV pipeline capacity since March 2020

    The application window for Contract For Difference (CfD) Allocation Round Four (AR4) closed on 14 January. While we await news on the timetable and next steps for the auction, this 'Chart of the week' takes stock of how the pipeline for onshore wind and solar PV has developed since the...

  • Low carbon generation

    CfD Allocation Round 4: how much capacity might we expect?

    On 13 September, BEIS published the draft budget notice and draft Allocation Framework for Allocation Round 4 (AR4) of the Contracts for Difference (CfD) scheme, scheduled to open in December 2021. BEIS set out a total draft budget of £265mn (in 2011-12 money) for AR4, meaning that total spend in...

  • Low carbon generation

    Chart of the week | To 6 GW… and beyond! Offshore wind in the CfD scheme

    The role of Contracts for Difference (CfD) generators in the electricity market continues to expand and Allocation Round 4 (AR4) to be held later in 2021 will expand this role further. By the end of 2020, installed generating capacity supported by the CfD scheme already totalled 5.2GW, providing Great Britain...

  • Low carbon generation

    Chart of the week | What might compete in upcoming Capacity Market auctions?

    The next round of Capacity Market (CM) auctions are set to take place in March 2021, starting with the T-1 (Delivery Year 2021-22) on 2 March followed by the T-4 (Delivery Year 2024-25) on 9 March. The prequalification window for these auctions have been open since 20 July 2020 and...

  • Low carbon generation

    Chart of the week | The pipeline for CfD AR4: Who, where, when?

    ‘Pot 1’ technologies may be reinstated in the next Contracts for Difference Allocation Round 4 in 2021. This Chart of the week looks at the pipeline of renewables projects which are most likely to enter the auction.

  • Low carbon generation

    Pixie Chart of the week | Germany demonstrates benefit of auction system

    Germany regularly runs auctions to subsidise renewable generation capacity. In 2020, it plans to run 20 auctions – seven solar, seven onshore wind, three biomass and three mixed wind and solar – as well as six for CHP engines, seeking nearly 7GW of capacity in total. The auctions set a...

  • Low carbon generation

    Chart of the week | En-Route to market in 2020?

    Published on the 14 January was the latest update of Renewable Energy Planning Database (REPD). In summary, it provided an overview of current and planned green energy projects across Great Britain and Northern Ireland. In this week’s Chart of the week, we look at the government’s Renewable Energy Planning Database. It discusses...

  • Low carbon generation

    Chart of the week | Offshore wind: taking up the load

    In this week's Chart of the Week we discuss BEIS releasing its Allocation Framework for CfD Round 3 (AR3) on 21 January 2019, which included a new load factor for offshore wind of 58.4%. This compares to 47.7% for AR2 and 37.7% for AR1 in 2017 and 2014 respectively, marking significant anticipated improvements...

  • Low carbon generation

    Chart of the week | The policy gap – can it be met by subsidy-free renewables?

    New renewables capacity deployment in the UK is likely to slow with the closure of the Renewables Obligation (RO) and Feed-in Tariff (FiT) schemes. This is against a backdrop of the CCC's warning the fourth and fifth carbon budgets will be missed. All while “subsidy-free” renewables struggle to gain traction...

  • Low carbon generation

    Chart of the week | Quantum leap: new nuclear and future levy costs

    An FT article published today claims the government is edging closer to a deal on the Wylfa new nuclear power station. It is reported the government is seeking a 20% discount on the CfD agreed with EDF for Hinkley Point C, which would mean a strike price of £77.5/MWh (in...