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Research from Cornwall Insight shows that the role of Contracts for Difference (CfD) generators in the UK electricity market continues to expand, and Allocation Round 4 (AR4) to be held later in 2021 will only expand this role further.
 
Over the coming years, the CfD will be instrumental in changing the GB generation landscape with 1.9GW scheduled to come online in 2022 and a further 9.9GW between 2023 and 2027 under previous AR2 and AR3 rounds. The upcoming AR4 auction could procure up to an additional 12GW of further capacity, with a substantial proportion expected to be reserved in the auction for offshore wind in a new ‘Pot 3’ category. Cornwall Insight’s Renewable Pipeline Tracker shows that over 7GW of shovel ready offshore wind projects could enter the AR4 auction. The pipeline beyond this is even larger, with over 30GW of preliminary offshore wind projects in an early “scoping” stage and actively engaging in current Crown Estate Offshore Leasing Rounds.
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