The Government has launched a consultation seeking views from industry on how to make supply chains across the low-carbon electricity generation sector more efficient as part of the Contracts for Difference (CfD) scheme.  

The scheme will aim to support renewable energy, driving down the cost of technologies and encouraging private investment by providing projects with a stable income.

The potential changes are set to ensure generators commit to a range of actions to increase competitiveness of supply chains, driving down the cost of energy generation.

Greg Hands, Minister for Business, Energy and Clean Growth said: “The Contracts for Difference scheme has helped the UK become a world leader in renewable energy, drive down costs and reduce our exposure to volatile global fossil fuel prices.”

Within the CfD questionnaire, applicants choose the Supply Chain Plan commitments they wish to make, these are then tested for their quality and ambition ahead of an application being passed, while ensuring the UK fully abides by its international obligations set out by the WTO and in the EU-UK trade agreement.

Meanwhile, Business and Energy Secretary, Kwasi Kwarteng, has the ability to terminate a contract as a last resort if generators do not fulfil the Supply Chain Plan commitments they have made, with the consultation also inviting views on excluding sites from future application either for not signing the contract offered or for termination of the contract before or for failing to meet the delivery milestone.