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UK completes CfD subsidy regime

The UK government has released the final mechanism for determining how to allocate the new Contracts for Difference subsidy regime to renewable energy schemes, Renews has reported.

The CfD allocation framework sets out the eligibility criteria for processing applications and the procedure for distributing contracts to participating generators.

Onshore wind, large-scale solar PV farms and other technologies are expected to have to compete for CfDs in an auction process as part of the first allocation round, which opens on 14 October.

The Renewable Energy Association said it is “disappointed” by the lack of support for the solar PV sector, which is made up largely of small and medium-sized players.

The trade body warned that allocation is based purely on the cheapest bids between now and 2019 with no guarantee of support for any particular technology except wave and tidal.

The approach therefore “makes later schemes more likely to win support than near-term ones as these will be cheapest”.

REA chief executive Nina Skorupska said: “The fact is that CfDs are going to disadvantage SMEs and independent generators. DECC must act to remedy this and not doing so will put jobs and investment at risk.”

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