October 2024
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This conference examined next steps for the Contracts for Difference scheme in the UK.
With the recent publication of contracts awarded as part of Allocation Round 6, it brought together stakeholders and policymakers to discuss implications of the outcome, including steps to enable the successful deployment of new generation, and to consider proposed changes to AR7 and future rounds.
We expected discussion on key considerations for grid connectivity and electricity market reform, including options for locational pricing, and reliable delivery of the 9.6GW of expected capacity at a low cost for consumers. Areas to look at include transition and costs, and the potential impact on private sector investment in renewables.
Delegates assessed developments in the context of policy ambitions laid out in the Planning and Infrastructure Bill relating to energy decarbonisation and security, alongside the development of the National Wealth Fund and Great British Energy.
The conference followed the recent announcement from the Government that it will take control of the National Energy Systems Operator to run alongside GB Energy, with the aims of removing barriers to planning for electricity and gas networks and accelerating decarbonisation. Those attending looked at the impact of the Government’s recent decision concerning the network overall and the delivery of the CfD scheme.
The agenda brought out latest thinking on configuring CfDs to enable cost reduction and investment in renewables, and budgetary considerations for future allocation rounds to meet offshore capacity targets by 2030. Delegates discussed the expansion of phased CfD policy for onshore wind, floating offshore wind and solar projects, and the optimisation of the auction process for enabling rapid learning between allocation rounds.
Options for incentives and further support for investor confidence in renewables and other forms of green energy were also considered, alongside the future of industry collaboration with government and national agencies, including on the creation of a UK innovation hub.
Further sessions examined what more can be done to address barriers to stimulating renewable energy deployment, and the role of CfDs more generally in decarbonising the electricity system by 2030. Delegates assessed alternative renewable support mechanisms, as well as what can be learnt from international best practice and benchmarks in the global shift towards decarbonisation.
We are pleased to have been able to include keynote sessions with: Sulaiman Ilyas-Jarrett, Head of Policy and Strategy, Renewable Delivery, DESNZ; James King, Director, Scheme Delivery, Low Carbon Contracts Company; Esin Serin, UK Policy Fellow, Grantham Research Institute on Climate Change and the Environment, LSE; and Barnaby Wharton, Director, Future Electricity Systems, Renewable UK.
All delegates were able to contribute, alongside key policy officials, to the output of the conference, which will be shared with parliamentary, ministerial, departmental and regulatory offices. This includes the full proceedings and additional articles submitted by delegates. Those that attended include parliamentary pass holders from the House of Commons and officials from DESNZ; DBT; Defra; DAERA, NI; DfT; DoF, NI; MHCLG; MMO; NAO; HM Treasury; UKIB; EA; GLD; HSE; GBN; ONS; DECC, ROI; Department for the Economy, NI; The Scottish Government; and the Welsh Government.
