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<p>The Government set out the Allocation Framework for Contracts for Difference (CfDs)
on 13 May 2014, which has the potential to improve value for money, encourage new
entry and drive innovation.</p><p>Indicative CfD budgets will be published in July.
CfD allocation rounds will then determine which projects are successful and receive
CfD contracts and at what level of support. It is not possible to say in advance which
projects will receive support and at what level.</p><p>Offshore wind projects, classified
as ‘less established' technologies, are able to receive support in this Delivery Plan
period (2014/15-2018/19) at the administrative strike prices published on 4 December
2013, unless there is insufficient budget in a CfD allocation round to satisfy all
bids then an auction (competitive allocation) will apply. Those technologies would
then have to compete against each other on price whereby each project is paid the
clearing price for its delivery year within the auction, capped at its administrative
strike price.</p>
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