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<p>On 9 November 2016, we published information relating to the second Contracts for
Difference (CFD) Allocation Round, which will open in April 2017. This included reconfirming
the budget of £290m annual support for 15 years for ‘Pot 2’/less established technologies
for projects starting to generate from 2021/22 or 2022/23.</p><p>The CFD Counterparty
Body - The Low Carbon Contracts Company - has published the CFD implementation plan,
which sets out key indicative dates in relation to the second allocation round. The
plan includes the shortest and longest likely duration from the allocation round opening
to when contracts are awarded. This is approximately between 4 and 6 months depending
on whether or not there are any reviews and appeals through the process.</p><p>There
are some variations from Round 1. The minima for wave and tidal, which applied to
the 2015 CFD round, will not be extended as the expected costs for Wave and Tidal
Stream remain high relative to other less expensive technologies in Pot 2.</p><p>We
have also introduced a temporary cumulative cap of 150MW (equivalent to a budget maximum
of £70m) on fuelled technologies for this round. The Government believes that it is
appropriate and proportionate to impose a temporary maxima while we review these technologies
and consider the recent Call for Evidence on fuelled technologies in the CFD.</p><p>
</p><p>Wave, tidal stream and fuelled technologies all remain eligible to compete
in Pot 2 for CFD contracts, alongside geothermal and offshore wind, which will help
to drive costs down.</p>
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