House of Commons · Written Ministerial Statement
Business Update
09 February 2022 · Department for Business, Energy and Industrial Strategy
Proposed by Kwasi Kwarteng Con Spelthorne
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Plans to increase frequency of Contracts for Difference allocation rounds to annually
- AR5 allocation round will be brought forward to March 2023
- Consultation opened to improve application process for Supply Chain Plans in AR5
Issue summary
The statement discusses plans to increase the frequency of Contracts for Difference allocation rounds to accelerate low carbon power generation and reduce reliance on fossil fuels.
Action requested
I have decided to increase the frequency of the allocation rounds from around every two years to annually, with AR5 being brought forward to March 2023. A consultation has also been opened to improve the application process for Supply Chain Plans in AR5.
Key facts
- Contracts for Difference scheme awarded contracts totalling almost 16GW of new renewable electricity capacity.
- The per unit price of offshore wind has decreased by more than 60% since the first competitive allocation round (AR1).
- Allocation rounds will now occur every year, with AR5 set to take place in March 2023.