Allocation Round 7 of the Contracts for Difference scheme

Overview

The Contracts for Difference (CfD) scheme is Government’s main support mechanism for new low-carbon electricity generation projects in Great Britain. The Government continuously reviews the CfD scheme to ensure it remains fit-for-purpose as our electricity system evolves and we work towards our net zero ambitions. 

This consultation is inviting views on potential changes for Allocation Round 7 (AR7) (due to open in summer 2025), as well as providing policy updates. 

These include: 

• A relaxation of CfD eligibility criteria for fixed‑bottom offshore wind projects to permit projects that have not yet obtained full planning consents to participate in near-term allocation rounds.   

• Changes to what information the Secretary of State uses to inform the final budget for fixed‑bottom offshore wind, including greater visibility over sealed bid information.

• Considering changes to CfD contract terms that would give longer market certainty once contracts are awarded, including consideration of the merits of increasing the current 15-year CfD term to reduce overall project costs. 

• Implementing agreed policy changes and routine changes. 

We welcome responses from anyone with an interest in the proposals, including those considering participating in AR7 and future CfD rounds.