Summary
We're seeking views on several refinements to ensure that the CfD
to reflect current policy and that the scheme continues to
function as originally intended.
This consultation closes at
11:59pm on 30 January 2026
Consultation description
This consultation seeks views on proposed refinements to the
Contracts for Difference (CfD) contract terms in advance
of Allocation Round 8 (AR8). The proposals in this
consultation cover a range of areas, including:
- policy on surrendered
CfD capacity – making permanent the restriction on
bidding previously surrendered capacity into future rounds to
protect auction integrity and deployment timelines
- hybrid metering for single technology/multiple commercial
arrangements – enabling CfD and merchant assets of the
same technology to share metering infrastructure, reducing costs
- contractual changes for floating offshore wind
(FLOW) – extending
the Longstop Period and reducing the Required Installed
Capacity threshold to reflect the scale and complexity of
future projects
- introducing a new technology category for Other Deepwater
Offshore Wind (ODOW) – enabling
innovative foundation designs for deepwater sites to compete for
CfD support
- changes to improve scheme efficiency – proposed legislative
amendments to allow the National Energy System Operator
(NESO) to
correct errors made during the assessment of CfD applications and consider
new documentary evidence to clarify non-material errors and
omissions in applications, and minor adjustments to improve
administration of the pending applications process
- strengthening Unilateral Commercial Operations Notice
(UCON) provisions
– improving metering access and enforcement to prevent
distribution-connected generators from delaying CfD start dates and operating
on a merchant basis at elevated wholesale prices
- excluding applications with Gate 1 connection offers –
aligning CfDeligibility with grid
connection reforms to prioritise projects with firm connection
dates
- visibility of sealed bids – changing our approach on the
ability of the Secretary of State to see bids for AR8
- minor and Technical changes to the CfD contract terms to update
the CPI inflation factor and amend the definition of Inside
Information
- in addition, to provide a policy update on fixing the appeals
timeline
Together, these reforms are designed to maintain investor
confidence, support timely delivery of renewable capacity, and
ensure the CfD
remains fit for purpose as projects scale up in size and
complexity.
The proposed drafting changes are shown as tracked amendments in
the CfDcontract
documents, published alongside the consultation document. We
welcome responses from anyone with an interest in the proposals,
in particular those considering participating in AR8.
Read our consultation privacy
notice.
Documents
Proposed refinements for
Allocation Round 8 and future rounds: consultation
document
DRAFT: Contracts for Difference
Allocation Round 8 (Phase 1): Agreement
(Apportioned)
DRAFT: Contracts for Difference
Allocation Round 8: Agreement (Generic)
DRAFT: Contracts for Difference
Allocation Round 8: Standard Terms and Conditions
Ways to respond
Respond online
or
Email to:
contractsfordifference@energysecurity.gov.uk
