Corporate power purchase agreements (CPAs) and the development of bespoke renewable generation solutions are fundamental to supporting the drive towards a net zero grid. However, did you know there are multiple routes for funding new renewable developments such as Solar Parks and wind farms in the UK?

The Contracts for Difference (CfD) scheme is the primary support mechanism provided by the government for new low-carbon electricity generation projects in Great Britain. The government regularly reviews this scheme in partnership with the Low Carbon Contracts Company to ensure it remains effective as the electricity system evolves and the UK pursues its net zero goals. The next CfD allocation round is under consultation and will remain open until March 21, 2025.

This consultation, led by the Department for Energy Security and Net Zero, invites views on potential changes for Allocation Round 7 (AR7) (due to open in summer 2025), including Link to Contracts for Difference (CfD): Allocation Round 7 – GOV.UK.

Key consultation points being considered are:

• a relaxation of CfD eligibility criteria for fixed‑bottom offshore wind projects to permit projects that have not yet obtained full planning consents to participate in near-term allocation rounds
• changes to the information the Secretary of State uses to inform the final budget for fixed‑bottom offshore wind, including greater visibility over sealed bid information
• changes to CfD contract terms that would give longer market certainty once contracts are awarded, including consideration of the merits of increasing the current 15-year CfD term to reduce overall project costs
• implementing agreed policy changes and routine changes.

The consultation reflects continued support for offshore and floating offshore wind projects as key technologies in a 2035 decarbonized power sector.

The government is also reviewing responses to its consultation on introducing the CfD Sustainability Reward from AR7. This reward aims to reward projects that increase Offshore wind deployment, which is critical for achieving economic, environmental, and social sustainability.

For those of us working in the Renewable Power Purchase Agreement (PPA) and Corporate PPA (CPPA) sector, the results of the upcoming Contract for Difference (CFD) auction will significantly influence developers’ market offers to Corporations looking to embark on their CPPA journey. These factors are closely intertwined.

As we look to the future, there is an increasing need for a diverse and inclusive talent pool, ranging from engineers who will work on the national grid and renewable infrastructure projects to teams at energy suppliers and consultancy firms driving change.

The core mission of WUN is to Attract Female talent to work in, stay in, and thrive within the Energy industry. As we move into the latter half of this year and 2026, ensuring we have the right people, a solid infrastructure plan, and the necessary drive for funding new renewable projects will position the UK to keep working to meet its key Net Zero targets.

Karen Hosking, WUN Industry Advocate & PPA Manager, Inspired PLC.

If you are interested in all things Net Zero you can also catch up with the discussion on the following events:

2050 Net Zero – How we get there – Energy.

Net Zero in Utilities – The Skills & opportunities.

2050 Net Zero – How we get there – Water