The Contracts for Difference (Sustainable Industry Rewards and Contract Budget Notice Amendments) Regulations 2026

Jurisdiction: United Kingdom

Commencement: 15th April 2026

Amends: Energy Act 2013

 

Mini Summary

The Energy Act 2013 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

The Contracts for Difference scheme is amended to:

  • remove the statutory lead-in times for the Secretary of State before opening a CIB* application window; 
  • reduce the time period upon which the Secretary of State may vary the application window for the CIB allocation round;
  • extend the scheme’s sunset clause to any round established before 31st December 2028;
  • require the Secretary of State to consider the extent to which an applicant is likely to implement fair work practices when considering applications, amongst other requirements;
  • enable the Secretary of State to set and establish sub-budgets;
  • allow additional technologies to apply for a CIB statement; and
  • introduce minimum standards of financial contribution.

*The Clean Industry Bonus (CIB) (formerly known as the “Sustainable Industry Rewards”) provides extra revenue support to offshore wind developers who invest in supply chains in poorer communities, or in cleaner supply chains.

 

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