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Dates of first CfD allocation round announced

The first roll-out of new subsidies part of the electricity market reform will start in mid-October, the Department for Energy and Climate Change (DECC) has announced.

From 14 to 27 October, developers of renewable energy plants can apply for the first allocation round of Contracts for Difference (CfDs), which will end in March 2015.

DECC has also published the latest version of its terms and conditions for the granting of the subsidies.

With CfDs, the Government commits to provide renewable energy generators with a variable subsidy to top-up electricity market prices if they fall below a pre-agreed level, dubbed the “strike” price.

The CfD regime will replace the current Renewables Obligation from 2017, and will be managed by the Low Carbon Contracts Company, a private firm owned by DECC.

In July, the department announced that the total budget for the subsidies will be £205m and will be divided into two groups for established technologies, such as combined and heat power and landfill gas, and less established technologies, such anaerobic digestion.

Developers of all technologies can participate in the first round of allocation.

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