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CfD Allocation Round 2 - Results that will blow you away

CfD Allocation Round 2

The Department for Business, Energy & Industrial Strategy (BEIS) recently announced the details of the second Contract for Difference (CfD) Allocation Round.

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Key contact

Simon Virley - Partner and Head of Power and Utilities

Partner and UK Head of Energy & Natural Resources

KPMG in the UK

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CfD Allocation Round 2 - Results that will blow you away - wind turbine in sea

The Contract for Difference (CfD) Round 2 auction delivered a dramatic reduction in costs for offshore wind.

Key points included:

  • Three offshore wind projects were awarded contracts, with two projects clearing at £57.50/MWh (2012 real);
  • In total, the Government announced that 11 projects had successfully been awarded a CfD totalling 3.346GW of renewable capacity; and
  • 149.95MW of ‘fueled technologies’ were awarded, suggesting the ‘maxima’ of 150MW was triggered.

Despite the high volume of capacity procured, just £176 million, or 60% of the allocated budget, was utilised. These results will have a significant impact for UK energy policy and the energy mix going forward.

Download the latest CfD Allocation Round update for more information.

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