Clifford Chance

UK Government Announces Future Contracts For Difference Auctions

5 October 2018

The UK Government has announced on 23 July 2018 that the next Contracts for Difference (CFD) auction will open by May 2019, with the parameters for this auction to be released later this year. The Government plans to run subsequent auctions approximately every 2 years during the 2020s, and it is expected that these auctions will together utilise the previously announced budget of £557 million. Minister for Energy and Clean Growth Claire Perry stated that new auctions "could see 1-2 gigawatts of new offshore wind every year in the 2020s". Onshore wind is, however, likely to be excluded. This briefing considers the implications of the Government's announcement.

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