Contracts for Difference (CfD) Allocation Round 4: Draft Allocation Framework

The draft Allocation Framework for CfD Allocation Round 4 (AR4) sets out:

• the rules for Allocation Round 4
• the eligibility requirements that applicants must satisfy

Remote Island Wind (RIW): schematic diagrams

You can use these diagrams as part of your application if you are applying:

• for Remote Island Wind (RIW) CfD units connecting to the national transmission system
• to a distribution system in the local government areas of Comhairle nan Eilean Siar, Orkney Islands Council and Shetland Islands Council

Applicants can annotate the relevant diagram and submit to the Delivery Body to demonstrate that the project meets the condition in Regulation 27A(3)(d) of the Contracts for Difference (Allocation) Regulations 2014 (as amended), as set out in Schedule 5 of the Allocation Framework.

The eligibility requirements for RIW are geographically neutral and applications from any geographical location within scope will be considered.

For the purposes of Allocation Round 4, any references to soft constraints will not be relevant and will not apply for this round.

Differences from third Allocation Round

The most significant differences from the third Allocation Round are:

• simplified operation of delivery years in auctions in Rules 9, 16, 17, 18, 19 and 23
• amended valuation formula and operation of target dates in Rules 11, 12, 20 and Schedule 2
• amended rules for maxima in Rules 17, 18, and 19
• a new technology type, Floating Offshore Wind
• extension of the delay period before the allocation process must be re-run in Rule 21
• flexibility to apply 'soft' capacity caps, maxima and minima in Rules 9, 14, 16, 17, 18 and 19 (not being used in AR4)

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