Source · Select Committees · Scottish Affairs Committee
Recommendation 7
7
Paragraph: 37
Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind...
Recommendation
Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind and provides certainty to developers of renewable technology, but more could be done to improve the CfD system. By focusing on net zero goals the CfD could be realigned to prioritise best value, not just lowest cost. We recommend the next CfD round should prioritise renewable energy systems, not just at the lowest cost, but with a long-term view that focuses heavily on net zero targets and best value for money, up to 2050.
Paragraph Reference:
37
Government Response
Acknowledged
HM Government
Acknowledged
The Contracts for Difference scheme has been hugely successful in supporting investment in new capacity while seeing the costs of some renewable energy technologies decrease dramatically. We have recently announced the details of the next allocation round, due to be the biggest yet. We also know that the design of our schemes will need to evolve to continue to deliver the maximum benefit to consumers and the public. Views on this were sought through a call for evidence earlier in the year1 and are being factored into future policy design.