The Department of Energy and Climate Change (DECC) has confirmed that developers of UK renewable energy projects will be able to apply for Government support soon, under a new EMR (electricity market reform) package. Applications can be submitted between the 14th and 27th of October, according to the DECC, and as published under the final framework for CfDs.

CfDs are a new form of subsidy for the industry which will replace existing schemes, including the Renewables Obligation (RO), by 2017. The schemes budget has not yet been announced, however it is expected among analysts that it will be a significant amount to drive change within the renewable energy market, and in July Out Law covered intial CfD budgets as the scheme received EU approval; it was reported that companies running renewable energy projects will be able to compete for a share of over £200 million in subsidies.

The way CfDs work is rather simple, even if they are wrapped up in industry jargon; a CfD provides a guaranteed payment to operators of approved renewable generation technology. Effectively, this means that operators can claw back money when market prices are high. Thus, it’s an incentive for operators to invest more heavily in renewable energy schemes.

For more information about this, be sure to read the Contract for Difference: Final Allocation Framework for the October 2014 Allocation Round.