The Contracts for Difference (Miscellaneous Amendments) Regulations 2018
Commencement: 24th July 2018
- Contracts for Difference (Allocation) Regulations 2014
- Contracts for Difference (Definition of Eligible Generator) Regulations 2014
This Act sets out the legislative framework to ensure the UK generates enough secure, affordable and low-carbon energy to meet increasing demand. As well as cost and capacity issues, these forthcoming policies also consider the UK’s Climate Change Act 2008 commitments and legally-binding EU renewables targets. The Act introduces Contract for Difference, a key part of the Electricity Market Reform (EMR) programme.
These Regulations amend The Contracts for Difference (Allocation) Regulations 2014 and The Contracts for Difference (Definition of Eligible Generator) Regulations 2014.
Amendment to the Contracts for Difference (Allocation) Regulations 2014
These Regulations insert a new subclass of eligible generating stations for which application for a Contract for Difference (CFD) may be made – a remote island wind CFD unit.
They also insert additional qualification requirements that a remote island wind CFD unit must satisfy in order to qualify for a CFD.
A remote island wind CFD unit is all or part of an generating station which generates energy using wind and is located on a remote island which is wholly in offshore waters.
Amendment to the Contracts for Difference (Definition of Eligible Generator) Regulations 2014
These Regulations remove the requirement for a combined heat and power generator to intend to accredit their project under the Combined Heat and Power Quality Assurance Programme (CHQPA).
Although the accreditation requirement has been removed, projects will still need to be accredited under CHPQA through the terms of their Contracts for Difference (CFD) contact.
These Regulations also make minor amendments to the definition of waste. The amended definition clarifies that substances will not constitute waste if they have been intentionally modified or contaminated to fall within the definition of waste.
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