UK govt consults on CfD for remote island wind, other changes

The UK government today launched consultation on proposed changes to the Contracts for Difference (CfD) scheme, including proposals to allow remote island wind projects to compete in future auctions for less established renewable technologies.

According to the announcement, more than 750 MW of wind projects with planning consent on the Western Isles, Orkney and Shetland could be eligible for the next auction, which is scheduled for spring 2019, subject to state aid approval.

The government has announced up to GBP 557 (USD 747m/EUR 633m) million for next auctions for less established renewables and an intention to allow wind projects on the remote islands off Scotland to compete.

"We are delivering on our commitment to support remote island wind projects, which have the potential to benefit local communities," UK energy minister Richard Harrington said today.

Wind projects on remote islands benefit from strong winds but face higher transmission costs. The government plans to classify them as a separate technology and provide it with access to future allocation rounds for less established technologies.

The consultation also includes proposals to raise the efficiency requirements for combined heat and power (CHP) and advanced conversion technologies (ACT) to ensure that only advanced and efficient plants get subsidy. There are also changes aimed at more accurate forecasting of costs of future projects, as well as updated greenhouse gas emissions criteria for new projects using solid and gaseous biomass as feedstock.

The consultation will close on March 9, 2018.

(GBP 1 = USD 1.342/EUR 1.136)

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