Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how her Department plans to take into account changes in the level of costs when setting the Administrative Strike Price for renewable technologies in Allocation Round 6 of the Contracts for Difference.
The Government reviews auction parameters, including Administrative Strike Prices, ahead of every Contracts for Difference allocation round. Considering recent price volatility and that no offshore wind technologies were successful in Allocation Round 5, the Government has conducted a thorough review of its cost assumptions ahead of Allocation Round 6. The Government will set parameters that reflect the Contracts for Difference scheme’s objective to encourage low-carbon generation whilst considering net zero commitments, energy security and the likely cost to consumers. Core parameters for Allocation Round 6 will be published in November 2023.