BEIS extends Contracts for Difference commissioning period

The Department for Business, Energy and Industrial Strategy has decided to extend the potential commissioning period for projects subsidised through the Contracts for Difference scheme to the end of March 2026.

Under the rules of the scheme, projects can only receive the subsidy if they are commissioned in set ‘delivery years’ for each allocation round. At the moment the delivery years can be only be set in the period up to the end of March 2020.

The decision follows a five-week consultation which ended on 8 August. The department (BEIS) said all of the respondents were in favour of extending the potential commissioning period.

The proposed amendment to the regulations does not specify which delivery years should be set for a future allocation rounds. However, the majority of respondents said the delivery years for the next allocation round should be limited to 2021/22 and/or 2022/23.

BEIS said respondents raised a number of tangential concerns including over whether bio-energy projects should continue to be eligible for the subsidy and the need for clarity on the timing, eligibility criteria and budgets for future auctions.  

Last month it was reported that the next auction will be delayed until 2017, in part because of the extra workload created by the merging of the Department of Energy and Climate Change and the Department for Business, Innovation and Skills into BEIS.