A Solar Power Portal article makes the case for adapting the existing contract for difference for electricity if we are to meet our clean energy targets.

The renewable energy industry has generally been supportive of the CfD over the years, but the cracks in it have become more apparent and perhaps the greatest concern has been successive UK Government's belief that this mechanism is suitable to incentivise  all renewable electricity technologies regardless of their stage in the development life cycle and that the CfD ought to be the proven model for other net zero technologies.

There is a lot to be happy about but as Renewable UK and this article points out, we need something of a mini overhaul of thinking for the future.  I hesitate when I say this because as we have seen in the past, any long period of hiatus with any incentive mechanism in flux, does hinder roll out and investment in projects.  The vast majority (including me) don't want to see a scrapping of the the CfD, it is a case of working out (which ought not to be too difficult) why it is not suitable for some technologies particularly nascent ones, where the UK wants to see quick roll out of the initial demonstrators and early commercial projects.  For example, we have to be honest that the CfD has not been ideal for geothermal, marine energy and even floating wind projects thus far.  Those technologies are doing their best to work with it but it is very challenging.

I probably sound like a broken record, but I think it is important to continue to remind people (because many of the early pioneer developers have now disappeared into the sunset and others seem to conveniently ignore it) that our success in deployment of for example, onshore wind, solar and offshore wind was not originally built off the CfD.  Rather it was the Renewables Obligation and FiT etc. that led to the first wave of roll outs which allowed those technologies to learn and drive down cost for the purposes of then progressing to a CfD mechanism.  The concept of “build it and you will get the incentives (providing it works)” stimulated the UK's success.

It is also a case of modify some of the principles in the CfD even for established technologies and the Renewable UK report is a useful starting point.

With the new government in place and the desire to see renewables flourish, I am hopeful of an open mind with the caveat of not throwing the baby out of the bathwater.