DESNZ launches consultation on proposed reforms for CfD AR7
The Department for Energy Security and Net Zero (DESNZ) has launched a consultation, seeking views on proposed reforms for Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme, scheduled to open in summer 2025. Key proposals include: (1) relaxing CfD eligibility criteria for fixed-bottom offshore wind projects to permit projects that have not yet obtained full planning consent to participate in near-term allocation rounds; (2) changing the information used by the Secretary of State for Energy Security and Net Zero to determine the final budget, including providing increased transparency of sealed bid information; and (3) changing CfD contract terms to provide longer market certainty once contracts are awarded, including extending the current 15-year CfD term to reduce overall project costs. The consultation closes on 21 March 2025.