Department for Business, Energy and Industrial Strategy

The Department for Business, Energy and Industrial Strategy (BEIS) replaced the Department for Business, Innovation and Skills (BIS) and the Department of Energy and Climate Change (DECC) in July 2016.

BEIS is responsible for: 

  • Business 

  • Industrial strategy 

  • Science, research, and innovation 

  • Energy and clean growth 

  • Climate change 

BEIS set up the Contracts for Difference (CfD) scheme in 2014 as part of Electricity Market Reform (EMR), which was designed to promote investment in secure and low-carbon electricity generation while improving affordability for consumers.  

BEIS’s main role in the CfD scheme is in setting the policy framework and deciding the rules and timings for each new allocation round. This includes: 

  • Running public consultations on major changes  

  • Confirming which technologies and types of projects are eligible for auctions  

  • Publishing the timings for each round, including when the round will open 

  • Publishing the allocation framework, which states the rules for operating the auction   

  • Setting the overall budget and capacity caps available in auctions 

  • Setting the administrative strike prices for technologies – these are a cap on the level of support available to each technology 

  • Defining the standard conditions of new contracts  

  • Setting the policy and publishing guidance for supply chain plans for projects over 300MW 

BEIS is not involved in the actual running of the auction or in the signing and management of the contracts with projects that are successful in each allocation round. These parts of the process are managed by National Grid ESO (EMR Delivery Body), Ofgem and the Low Carbon Contracts Company, respectively.   

Key documents published by BEIS for the upcoming Allocation Round 4 can be found on the publications page of this website, and also on the GOV.UK Allocation Round 4 pages