UK Government Confirms CfD Changes To Allow Repowered Projects To Bid

Following a consultation, the UK government will implement changes to the Contracts for Difference (CfD) scheme ahead of Allocation Round 7, including allowing repowered onshore wind projects to participate.

In its consultation response on Friday, the government also announced plans to extend the phased CfD policy, currently available to fixed-bottom offshore wind projects, to floating offshore wind.

RenewableUK, an industry organisation, welcomed the reforms. They said the changes benefit both billpayers and energy security. Allowing repowered onshore wind projects to enter future auctions will help maintain essential generating capacity and take advantage of the UK’s excellent wind resources by using more powerful and efficient turbines.

The extension of phased CfDs for floating wind projects was also seen positively, offering developers more flexibility to optimise cost-efficiency. However, they stressed the need for further reforms to accelerate the next round of test and development projects. These should focus on fostering UK supply chains in floating wind to expedite scaling and deployment in the years ahead.