contracts for difference

  • Business supply and services

    The first month of the EGL against a backdrop of falling wholesale prices

    The end of January means the end of the first month of the Electricity Generator Levy (EGL). First announced as part of the Autumn 2022 budget, the EGL places a 45% tax on generation receipts above £75/MWh for non-Contracts for Difference (CfD) renewable and nuclear generators until March 2028. In...

  • 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

    The outlook for private wire business models

    Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...

  • 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 | 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 | Tipping the cap: analysis of competition for CfD AR3

    Qualification for the third allocation round (AR3) of the Contracts for Differences (CfDs) low-carbon support scheme is due to commence on 29 May.  BEIS announced in November 2018 that participants in AR3 would be competing for an annual budget of £60mn, with successful bidders expected to commission in delivery years...

  • 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...