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15/12/2017

Consultation Launched On CfD Scheme Proposals

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The UK Government has launched a consultation on proposed amendments the Contracts for Difference (CfD) scheme.

The discussion, which ends on 09 March 2018, includes proposals to allow remote island wind projects to apply for CfD during the next competitive auction for less established renewable technologies in spring 2019.

In its Clean Growth Strategy, the Government revealed up to £557 million will be available for future auctions.

A 2013 report for the UK and Scottish governments concluded that wind projects on the Western Isles, Orkney and Shetland could supply around 3% of the UK's total electricity demand. More than 750MW of wind projects with planning consent on these islands could be eligible for the next auction.

If a sufficient number of projects are successful in the auction, it could pave the way for construction of new transmission links which would deliver a range of wider and longer term benefits and cost savings to the renewables industry and to the island economies.

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The consultation asks for views on other changes the government is considering making to the CfD, including proposals to increase the efficiency requirements for Combined Heat and Power (CHP) and Advanced Conversion Technologies (ACT) as technology improves. Changes are also proposed to ensure that costs of future projects can be accurately forecasted and that future schemes continue to drive carbon emission reductions.

UK Energy Minister Richard Harrington said: "We've placed clean growth at the heart of our new Industrial Strategy. We are cutting emissions while keeping costs down for consumers, creating high value jobs and growing the economy.

"We are delivering on our commitment to support remote island wind projects, which have the potential to benefit local communities."

UK Government Minister for Scotland, Lord Duncan, added: "Wind projects in the remote islands of Scotland have the potential to generate substantial amounts of electricity and cut emissions, supporting economic growth and delivering lasting benefits for communities.

"Enabling these projects to compete in future auctions will reinforce the UK's position as a world leader in renewable generation, as well as providing Scottish jobs in any projects supported."

To view the consultation, visit here.

(LM/MH)

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