The UK government is weighing up whether to introduce non-price factors into the contracts for difference (CfD) scheme, its main mechanism for supporting renewables.
On Monday, the government launched a call for evidence seeking information and views about assessing developers’ bids not based only on price but on factors such as supply chain sustainability, addressing skills gaps, innovation and enabling system and grid flexibility. The call for evidence closes on May 22. Based on the results, the government could launch a consultation on more detailed proposals.
It hopes that the mooted changes would help drive investment in the sector, grow the economy and improve energy security.
The government is looking at adding non-price factors to the CfD scheme after the recommendations in Chris Skidmore’s Net Zero Review and the recent report from the Offshore Wind Champion Tim Pick.
Tim Pick welcomed the call for evidence. “As noted in my recent report, price-only CfD auctions have created a strong driver for innovation to drive down costs, but there is a need in the current climate to consider how to better develop new supply chains and associated jobs,” he said.
