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Water Power: Finance

Question for Department for Business, Energy and Industrial Strategy

UIN 130782, tabled on 16 December 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of refining the pot structure of the Contracts for Difference round to include a reserved amount of funding for marine projects to compete for.

Answered on

13 January 2021

In November, the Government confirmed changes to the pot structure for the Contracts for Difference scheme to introduce a new, third pot for offshore wind ahead of the fourth Allocation Round scheduled to take place in late 2021. The Government considers this approach will allow auction parameters to be set across pots in a way which better reflects project characteristics. Wave and tidal stream projects remain eligible to compete in pot 2 for CfD auctions. We will publish specific allocation round parameters in advance of the next auction; typically, five to six months in advance. This will include the details of whether any technology-specific minima will apply.

Answered by

Department for Business, Energy and Industrial Strategy