The UK Government issued a consultation on 21 February 2025 to propose further reforms to the Contracts for Difference (CfD) scheme for Allocation Round 7.
The reforms to the Contracts for Difference (CfD) scheme is intended to support the UK’s aim to shift towards a clean power-based energy system by 2030, as outlines in the Clean Power 2030 Action Plan.
The Government's proposed reforms aim to ensure substantial renewable energy deployment, delivering low-cost clean power while minimizing consumer expenses. More broadly, these changes aim to support energy independence and protection from volatile fossil fuel prices.
The consultation is open until 21 March 2025 and seeks to gather opinions on the following proposed changes:
- Relaxation of CfD eligibility criteria for fixed-bottom offshore wind projects;
- Information the Secretary of State uses to inform the final budget;
- Extension of CfD contract terms;
- Increasing the Target Commissioning Window for Solar PV from 3 to 6 months; and
- Addressing the potential impact on AR7 from wider risks around renewables.
Several of these proposed changes were outlined in the Clean Power 2030 Action Plan.
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