Outcome of CfD Sustainable Industry Reward consultation issued

On Wednesday 13 March, DESNZ published its response to a consultation through which it sought views on whether to introduce a Contracts for Difference (CfD) Sustainable Industry Reward (SIR) from CfD Allocation Round 7 (AR7) onwards. According to DESNZ, the SIR aims to accelerate deployment of low carbon electricity generation with a specific focus on offshore and floating offshore wind. In its response, the government confirmed its decision to implement a CfD SIR, subject to Parliamentary approval. It states that the CfD SIR process will be run as a competitive allocation for extra revenue support six months before the main CfD auction, with applicants required to meet minimum standards to gain access to the CfD round. It sets out several criteria for SIR, including investment in shortening supply chains in deprived areas in the UK; investment in more sustainable means of production anywhere in the world; or combining both approaches. DESNZ will work with industry to refine the framework, before publishing a final version in the summer.