UK to launch fourth round of CfD energy scheme

By Erin Voegele | September 15, 2021

The U.K. Department for Business, Energy and Industrial Strategy on Sept. 13 announced the fourth round of its Contracts for Difference (CfD) energy scheme. Landfill gas, sewage gas, energy-from-waste with combined-heat-and-power (CHP), large-scale anaerobic digestion, and dedicated biomass with CHP are among the technologies eligible to participate.

The fourth round of the CfD is divided into three pots. Technologies eligible for Pot 1 include landfill gas and sewage gas, and energy from waste with CHP. The pot is also open to onshore wind and solar photovoltaic (PV) projects with at least 5 megawatts (MW) of capacity, along with hydro projects with 5-50 MW of capacity.

Pot 2 is open to advanced conversion technologies (ACT), anaerobic digestion projects with at least 5 MW of capacity, dedicated biomass with CHP, floating offshore wind, geothermal, remote island wind projects of at least 5 MW capacity, tidal stream, and wave technologies.

Pot 3 is dedicated to offshore wind.

According to the BEIS, £265 million ($366.8 million) per year will be provided to businesses in the fourth round of the CfD scheme, which aims to double the renewable electricity capacity secured in the third round and generate more than the previous three rounds combined. The BEIS said £10 million will go to Pot 1, with a cap of 5 gigawatts (GW) on total capacity and maximum capacity limits of 3.5 GW imposed on both onshore wind and solar PV. A total of £55 million will go to Pot 2 with no capacity cap imposed and £24 million ringfenced support for floating offshore wind projects. The remaining £200 million is allocated to Pot 3 with no capacity cap.

The fourth CfD round is set to open in December. Additional information is available on the BEIS website