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Written question asked by Lord Teverson (Liberal Democrat) on Thursday, 18 June 2026, in the House of Lords. It was due for an answer on Thursday, 2 July 2026. It was answered by Lord Whitehead (Labour) on Thursday, 2 July 2026 on behalf of the Department for Energy Security and Net Zero.

Renewable Energy: Contracts

Question

To ask His Majesty's Government what steps they are taking to ensure strong competition between bids in the Contracts for Difference Allocation Round 8.

Answer

The Contracts for Difference (CfD) scheme allocates contracts through competitive auctions, ensuring that the lowest cost bids are successful.

For Allocation Round 8 (AR8), the Government has introduced refinements following consultation to strengthen competition and improve price discovery. To that end the Secretary of State will now have visibility of anonymised sealed bids across multiple technologies, creating competition across technologies, as well as within technology specific pots.

This change supports a continued focus on securing value for money for billpayers and maintaining robust competition. Final auction parameters will be confirmed in July, and the sealed bid window will open later this year.

Secondary information

Type
Written question
Reference
HL1125
Session
2026-27
Subjects
Contracts Renewable energy
Link
View this Written question on www.parliament.uk