Jurisdiction: United Kingdom
Commencement: 14th January 2025
Amends: Energy Act 2013 (2013 c.32) with commencement Order and associated Regulations
Mini Summary
The Energy Act 2013 (2013 c.32) sets out the legislative framework that the Government will make Regulations from in the coming years to ensure that the UK will generate 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.
Duties
Various duties apply and are available to view on the Legislation Update Service.
Amendment
Changes have been made to previous regulations, covering the replacement of parts in eligible generating stations and the eligibility of phased offshore wind CFD units.
The Contracts for Difference (Definition of Eligible Generator) Regulations 2014
The definition of generating activity has been updated to include alteration by decommissioning a part of an eligible generating station in order to replace it. A person conducting this activity is still considered an eligible generator.
The Contracts for Difference (Allocation) Regulations 2014
Those planning to decommission a part of an eligible generating station, in order to replace it, can still apply to take part in the CFD allocation process.
Also, floating offshore wind units which are part of a phased offshore wind project are now eligible for CFD allocation.