Contracts for Difference (CfD) Allocation Round 6 (AR6) has increased by 51%

As part of the Labour government’s plan to make Britain a “clean energy superpower” they have announced that the Contracts for Difference (CfD) Allocation Round 6 (AR6) has increased by 51%, from ￡1.025 B to ￡1.555 B. The funding for this allocation round is split into different pots, to account for the different cost levels for the various technologies.

• Pot 1 is allocated to more established technologies such as onshore wind, solar photovoltaic and hydro (among others).?
• Pot 2 is allocated to emerging technologies such as tidal stream, wave and floating offshore wind (among others).?
• Pot 3 is allocated to offshore wind.

The budgets for each pot for AR6 have increased as below:

• Pot 1 : From ￡120 M to ￡185 M, an increase of 54.2%
• Pot 2 : From ￡105 M to ￡270 M, an increase of 157.1%
• Pot 3 : From ￡800 M to ￡1.1 B, an increase of 37.5%

The increase means the AR6 budget is now 7 times higher than the previous round, AR5.?

The government has set an ambitious target to double the capacity of onshore wind (from 15 GW to 30 GW) and to quadruple the capacity of offshore wind (from 15 GW to 60 GW) by 2030. This increase in funding to the CfD scheme is part of their strategy for reaching this goal.?

To speak to our team about the CfD scheme email us at [email protected].