Contracts for Difference: UK Government releases final terms of CfD AR5

The fifth allocation round for the UK’s contract for difference (“CfD”) auction opened on 30 March 2023 for bidding. This is the first CfD auction round to run on an accelerated annual basis, as part of the UK Government’s ambitious net zero objectives. AR5 is scheduled to close on 24 April 2023 and will see offshore wind competing against more established technologies, with floating offshore wind competing alongside other newer technologies.

We previously looked at the changes to CfDs being proposed for AR5, a number of which were subject to consultation. The Government has now published responses to the consultation alongside the final CfD Standard Terms and Conditions, the Private Network Agreement and the generic CfD Agreement and other contract variants for AR5. In this article, we reflect on the amendments made to the CfD Standard Terms and Conditions in response to the Government’s consultation.

Please get in touch if you would like more detail on the legislative and regulatory regimes underpinning AR5 or the UK CfD scheme generally.