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Issue 422 | CfD Budget

Issue 422 | CfD Budget

Tom Edwards Tom Edwards Senior Consultant

DECC conference callCfD budget allocation 24 July 2014 DECC issued the draft Contracts for Difference (CfD) Budget Notice for CfD allocation round one on 24 July, it also included an explanatory note and held a conference call at 9.30am on the same day. The notice contains the budget allocation that will be given to the Electricity Market Reform (EMR) Delivery Body to allocate CfD’s in the first allocation round commencing on 14 October 2014. It noted the final budget will be confirmed on 29 September 2014. Indicative budget In the first allocation round the government intends to release £50mn for allocation for established projects commissioning from 2015-16 onwards. It also intends to release £155mn for allocation for less-established technologies from 2015-16 onwards. There is no release of money for the biomass conversion “established technology pot”. This budget represents a cap to be spent on projects that are allocated CfDs in the 2014 allocation round only. It is not intended to accommodate Final Investment Decision Enabling for Renewables (FIDeR) projects. To be clear, the figures listed for each year are not amounts to support new projects in that year over and above previously committed spend, but a representation of the total spend for CfD projects in that year. If either of the Pot budgets (£50mn or £155mn per annum spend level) is reached through the allocation methodology then the allocation is closed. There is no indication of a change to the auction process. We expect that projects will be ranked cheapest ...

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