UK Considers Floating Wind Turbines in Contracts-for-Difference Revamp (1)

DEC. 14-31: CarrZee: Injecting competitive tension into clean markets to make clean energy cheaper will be a key challenge for 2023.

These contracts are one way to do it, for floating wind turbines, carbon capture (carbon contracts for difference) and beyond.

Here is the relevant parts of the report:

2.1 Defining Floating Offshore Wind 

2. Would you support a change to Regulation 27ZA(4) in the CfD (Allocation)Regulations 2014? If yes, what would you suggest?

3. Would you support Government publishing a list of technology types which itconsiders eligible to compete for a floating offshore wind CfD? If yes, would yousupport this in addition to, or instead of, a change to Regulation 27ZA(4)? If yes, what technologies would you support including on the list? 

4. Can you provide any further evidence of the impact of these changes to support your responses?

Many other changes are suggested, including disallowing private power networks for oil and natgas facilities.

1.1 CfD for Private Network Generators

1. The Government welcomes views on its proposal to make electricity that is supplied via private wire to offshore oil and gas facilities ineligible for CfD payments from Allocation Round 6 onwards.

What would be the likely impact of this approach, and should any alternative approaches be considered?

Please provide evidence in support of your response.

Here is the relevant document:

Dynamic Earth - Winds
Dynamic Earth – Winds by NASA Goddard Photo and Video is licensed under CC-BY 2.0

Department for Business, Energy & Industrial Strategy

Contracts for Difference

Page summary:
A Contract for Difference (CfD) is a private law contract between a low carbon electricity generator and the Low Carbon Contracts Company (LCCC), a government-owned company.

Change made:
Link to AR6 page added.

Time updated:
2:40pm, 14 December 2022

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