Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of fully transitioning older renewable projects away from Renewable Obligation Certificates and on to Contracts for Difference.

The existing Contracts for Difference (CfD) scheme has been successful in bringing forward new renewable generation at fixed, competitive prices. CfDs are already helping to reduce consumers’ exposure to gas price volatility.

The Government has announced plans to develop a voluntary Wholesale Contract for Difference (WCfD) for eligible legacy low-carbon generators whose revenues remain exposed to wholesale electricity prices. Under this current proposal, generators accredited under the Renewables Obligation (RO) would continue to receive RO support, with only their wholesale electricity revenues being exchanged for a fixed-price CfD. We are engaging with industry on detailed policy options, and plan to consult later this year, however, note that contracts will only being offered where they deliver clear value for money for the consumer.