Westminster Energy, Environment & Transport Forum

For booking-related queries or information on speaking please email us at info@forumsupport.co.uk, or contact us: +44 (0)1344 864796.

Next steps for Contracts for Difference in the UK

auction design & allocation rounds | AR7 lessons | priorities for AR8 & beyond | eligibility rules & project pipelines | budgets, transparency & oversight | investment risk, costs & competition | supply chains & the Clean Industry Bonus | workforce skills

July 2026


Starting from: £99 + VAT
Format: DOWNLOADABLE PDF


This conference considered next steps for the Contracts for Difference scheme in the UK. Following Allocation Rounds 7 and 7a across offshore and onshore wind, solar, and tidal, attendees assessed priorities for future allocation rounds.


It was an opportunity for stakeholders and policymakers to assess the outcomes of consultations on proposed refinements for AR8 and future rounds, with initial government responses recently published. Delegates examined the Government’s proposed legislative amendments to allow NESO to correct assessment errors, issue new and amended non-qualification notices, consider new documentary evidence when resolving application omissions, provide an additional Tier 1 appeal stage for affected projects, and refine the rules on pending applications.


Discussion focused on approaches to auction design, eligibility, budget setting, and the role of supply chain incentives such as the Clean Industry Bonus in supporting clean energy investment and delivery.


Following the announcement of an indicative timetable for AR8, with the application window opening in July 2026, discussion looked at what is needed if government targets for Clean Power 2030 - and wider objectives for energy security - are to be achieved. Considerations around certainty and risk assessment arising from the recently published allocation framework for AR8 were also examined. With confirmation of changes to Gate 1 eligibility, surrendered‑capacity rules, deepwater offshore wind classification and the use of flexible bids, delegates assessed implications for AR8 and future rounds.


Further sessions considered the Government’s proposals for a new voluntary Wholesale CfD scheme for legacy renewable projects alongside changes to the Electricity Generator Levy, to be legislated in the upcoming Electricity Generator Levy Bill announced in the recent King’s Speech. We expected discussion on implications for existing renewable assets, and how these may affect incentives to move to fixed-price contracts. Discussion also considered proposals to decouple electricity prices from gas, and what this could mean for investor confidence, consumer costs, and the role of CfD in supporting price stability.


Auction design, eligibility criteria & project pipeline
Sessions examined how recent changes to auction design and eligibility criteria can be taken forward in ways that support a credible and investable project pipeline, effective competition, innovation, and timely delivery. We expected discussion on concerns raised by some stakeholders around the inclusion of repowered onshore wind, including risks of over-subsidisation and implications for auction competition, participation, and value for money. Potential benefits of asset renewal relating to costs, deployment speed, and pressure on network capacity were also considered.


The relaxation of eligibility criteria for fixed-bottom offshore wind was also discussed, amid concerns that a lack of full planning consent could increase delivery risk, supply chain uncertainty, and consumer costs, while disadvantaging projects further advanced in the planning process. Delegates assessed whether further refinements to CfD auction design and approaches to managing non-delivery risk may be required, alongside implications for planning scrutiny, investor confidence, and supply chain capacity.


Further discussion examined proposals to extend contracts from 15 to 20 years, including implications for strike prices, cost of capital, consumer exposure, and market flexibility over a contract’s lifecycle.


Budgets & regulation
Further sessions looked at implications for budget-setting of enhanced visibility of sealed bid information, including the possibility to exceed initial budgets where value for money for consumers can be demonstrated, as well as the potential to underspend.


Discussion examined how this approach may influence confidence in auction processes and bidder behaviour, alongside implications for regulatory oversight and transparency. Delegates also considered what boundaries may be appropriate for greater flexibility in CfD allocation budgets, including how transparency can be balanced with protection of commercially sensitive information.


Supply chains, skills & industrial strategy
The agenda also examined the preparedness of the renewable industry for delivering contracted projects, looking at barriers around supply chains, skills gaps, planning and consenting processes, and network constraints. Attendees considered the interaction of the expanded CIB with initiatives from Great British Energy and the National Wealth Fund aimed at supporting domestic and sustainable supply chains in wind.


CIB refinements for AR8 were also discussed, including options for achieving greater clarity, assurance, and confidence in delivery of supply chain commitments, amid concerns around ambiguity in definitions, difficulties in verification, and potential administrative and compliance burdens. Delegates considered amendments to the CfD contract to implement the CIB and hybrid‑metering reform, proposed in the Government’s recently closed consultation ahead of ARB.


Alignment of the CIB with wider industrial policy objectives was also examined, including priorities for supporting skilled job creation in clean energy sectors. Discussion looked at the introduction of the Fair Work Charter and the potential use of CIB eligibility as an enforcement mechanism, alongside the role of the skills investment fund expected to be introduced in 2027, and opportunities for industrial development and growth in deprived areas.


Electricity market reform & system planning
Delegates assessed how CfD reform will sit alongside related energy market developments - including the Reformed National Pricing Delivery Programme - looking at implications of network charging reform and the introduction of spatial plans for investment decisions and siting, with concerns around regional fairness.


Discussion also examined implications of grid connection reform and network capacity, alongside alignment with planning and consenting frameworks, for addressing grid bottlenecks and risks to delivery timelines.


As well as key stakeholders those attending included parliamentary pass-holders from the House of Commons and officials from the Department for Energy Security and Net Zero; Department for Environment, Food and Rural Affairs; Department of Agriculture, Environment and Rural Affairs, NI; Department for Business and Trade; Department for the Economy, NI; Department for Education; Department for Transport; Ministry of Defence; Climate Change Committee; Great British Energy; Office for Environmental Protection; National Audit Office; Marine Management Organisation; Ofwat; Health and Safety Executive; National Wealth Fund; Office for Investment; Department of Enterprise, Tourism and Employment, ROI; the Welsh Government; and The Scottish Government.



This on-demand pack includes

  • A full video recording of the conference as it took place, with all presentations, Q&A sessions, and remarks from chairs
  • An automated transcript of the conference
  • Copies of the slides used to accompany speaker presentations (subject to permission
  • Access to on-the-day materials, including speaker biographies, attendee lists and the agenda