AR6 core parameters published

The Government has also launched a consultation on introducing sustainable industry rewards into the CfD scheme from AR7.

The core parameters set out administrative strike prices (ASPs), pot structure and delivery years for AR6. Following an extensive review of the latest evidence, the Government has raised ASPs for all technologies, including a 66% increase in the offshore wind ASP. 

The ASPs reflect increased costs industry are facing globally and are designed to balance participation in the auction with ensuring good value to billpayers, building on the success of previous rounds.

The core parameters also confirm that AR6 will feature a three-pot structure, with offshore wind returning to its own pot. This reflects the strong pipeline of projects ready to participate in the round.

•    AR6 core parameters 
•    ASP methodology note 
•    Government press release  

The full budget for AR6 will be published in March 2024 ahead of the round opening.

AR6 timeline and draft allocation framework

Alongside the core parameters, the Government has published a detailed timeline for AR6, setting out specific dates for each stage in the five potential timeline scenarios. 

The Government has also published the draft allocation framework, which sets out the rules and eligibility requirements for the round.

•    AR6 timeline
•    AR6 draft allocation framework 

Sustainable industry rewards 

The Government has today launched a consultation on introducing sustainable industry rewards (formerly non-price factors) into the CfD scheme. This follows a previous call for evidence from the Government. 

The introduction of these rewards would see projects receive extra revenue support through the CfD for taking significant action to boost the sustainability of their supply chains. The Government is proposing to introduce the policy from AR7.

•    Respond to the consultation 

The consultation closes on 11 January 2024.