Changes announced to the Contracts for Difference scheme

24/11/20 | Reaction

The Government has today set out a number of changes to the Contracts for Difference (CfD) scheme ahead of the 4th allocation round (AR4) next year, which will support up to 12GW of new renewable energy capacity.

Responding, Morag Watson, Director of Policy at Scottish Renewables, said: 

“Reaching our net-zero target will require using the diverse range of renewable technologies we have available here in Scotland and next year’s Contracts for Difference auctions will support the critical investment needed to achieve this.

"Onshore wind is one of the cheapest forms of new energy generation and Scotland is already the UK’s onshore wind powerhouse with around 58% of its installed capacity, as well as 80% of its consented capacity. Allowing this technology to access the CfD auctions once again will enable their financing and deliver enormous economic benefits across the country.

"We welcome the new dedicated pot for offshore wind and support for innovative technologies such as floating wind. Scotland’s offshore renewable energy resource is one of the best in the world and our waters will have a huge role to play in the global expansion of these important technologies. 

"However, differences between Scotland and the rest of the UK need to be accounted for in all areas to ensure there is a level playing field for Scottish projects, particularly the disproportionate impact transmission charging costs pose for Scottish projects. Not addressing these disadvantages will hamper progress towards a geographically diverse energy system and reaching the level of deployment needed to achieve net-zero.”



  1. The UK Government's press release can be found here.
  2. Images of Morag Watson available here.