|Policy status:||In Force|
|Date Effective:||2014 (October)|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums|
|Policy Target:||Solar, Wind, Wind>Offshore, Wind>Onshore, Ocean, Ocean>Tidal, Ocean>Wave, Multiple RE Sources>CHP, Bioenergy>Biomass for power, Geothermal, Hydropower|
|Size of Plant Targeted:||Large|
Contract for Difference (CfD) was introduced in UK in October 2014 aiming to replace Renewable Obligations system in the UK. CfD scheme is designed to support deployment of large scale renewable projects (more than 5MW).
The CfD is based on a difference between the market price and an agreed “strike price”.
CfDs are concluded between the renewable generator and Low Carbon Contracts Company (LCCC), a government-owned company.
CfD contracts are awarded for period of 15 years.
Generators that want to participate in the CfD scheme must participate in allocation rounds.
The CfD scheme is currently in place in Great Britain only. In Northern Ireland the CfD scheme shall be introduced in 2016. Until 31 March 2017, RES-E generators are able to choose between Renewables Obligation (RO) and CfD schemes. From April 2017 the CfD scheme will be the only support scheme for all new RES-E plants over 5MW.
Last modified: Wed, 29 Jul 2015 17:51:35 CEST