Allocation Round 3 (AR3) developments

There have been two previous CFD allocation rounds. The first round results were published 26 February 2015 and the second round results were published on 11 September 2017. The third CFD allocation round is planned to open by May 2019, and thereafter it is expected allocation rounds will be held around every 2 years.

The 2017 Clean Growth Strategy signalled that up to £557m (2011/12 prices) of annual support would be available for further Contracts for Difference). Her Majesty’s Treasury (HMT) subsequently published a new framework for the Control for Low Carbon Levies.

The government makes changes to the scheme from time to time in the light of experience and to ensure it continues to delivery policy objectives.

Ahead of the third CFD allocation round, Ministers in BEIS issued a consultation proposing to make changes to the CFD scheme in December 2017. The response has 2 parts and the process is yet to conclude. All the relevant documentation can be found here.

A further consultation was published in the same document in August 2018 and raises further questions, on how the changes are implemented and on minor changes to the contract to ensure that the contract terms remain effective. This includes consulting on changes to a draft version of the CFD Standard Conditions and on two documents of relevance to CHP projects.

A final response will be published to this consultation alongside the contract standard terms.