Widening CfD criteria may trigger ‘fundamental overhaul’

Changing the Contracts for Difference auction process to give weight to non-price factors may require a “fundamental overhaul” of the renewable energy support mechanism, the government has said. Including non-price factors – such as infrastructure investment and strength of supply chains – has been mooted as a means to strengthen the CfD auction process. However, the Department for Energy Security and Net Zero (DESNZ) has suggested that doing so may require a complete rethink of the support mechanism.