MPs attack CfD allocation delay

MPs have warned that government subsidy support for the offshore wind sector is inadequate and stricken by delay and uncertainty

The process for allocating contracts for difference (CfDs) has attracted cross-party criticism.

MPs at a Westminster Hall debate on 6 January attacked delays in allocating CfDs and the size of the budget earmarked for offshore wind projects. They also warned that the offshore wind sector faced a financial precipice beyond 2020 because of energy policy uncertainty.

The government introduced CfDs last autumn as a new mechanism to support large-scale renewable energy projects. The contracts provide guaranteed electricity generation subsidies over a 15-year period and will eventually replace the current Renewables Obligation (RO) regime.

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