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<p>The Contracts for Difference (CfD) scheme is designed to encourage low carbon generation
and is open to a wide range of eligible renewable technologies. Under current eligibility
criteria, renewable projects are not eligible to receive CfD support if they have
already commenced generating. In a Government Response to a consultation published
in November 2020 the government clarified the eligibility of part-built projects,
i.e. those which have begun construction but have not commenced generating, stating
that these projects are eligible to compete in the 2021 allocation round. We consider
this achieves the right balance between accelerating deployment of renewables, whilst
providing value for money for consumers by ensuring scheme costs are limited to what
is necessary to legitimately stimulate deployment. We will keep this position under
review.</p><p> </p>
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