DECC Publishes Call for Evidence in Relation to the Implementation of the Contract for Difference (CFD) Scheme
25 March 2015
On the 23rd March 2015 the Department of Energy and Climate Change (DECC) published a Call for Evidence in relation to the implementation of the Contract for Difference (CFD) scheme in Northern Ireland.
In 2012 the Northern Ireland Executive consented to the CFD element of the Electricity Market Reform (EMR) programme being implemented in NI. The CFD scheme is designed to provide long-term price stabilisation to low carbon electricity generators, allowing investment to come forward at a lower cost of capital and therefore at a lower cost to UK consumers than the existing Renewables Obligation mechanism.
This consultation is of importance to two particular policy areas, firstly, providing regulation and licensing of energy industries and infrastructure, and secondly, maintaining UK energy security.
The overall purpose of this Call for Evidence is to gather evidence on the issues for implementing the Electricity Market Reform Contract for Difference scheme, with a specific focus on arrangements for NI, and the implications for how the CFD scheme could operate across the UK.
The DECC have outlined that the intention is that the implementation of the scheme remains as consistent as possible across the UK while considering the amendments that will be necessary to reflect the different market and regulatory arrangements in NI.
The publication of this Call for Evidence is the first consultation on the implementation of the CFD scheme in NI and the intention is to issue a response to this document when DECC issues a consultation on draft Regulations to implement the scheme. The call for evidence is open for responses from 23rd March and will close on 18th May 2015.
The Call for Evidence can be found here.