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  • CBI responds to BEIS Enabling a High Renewable, Net Zero Electricity System call for evidence

CBI responds to BEIS Enabling a High Renewable, Net Zero Electricity System call for evidence

Amie Jones Policy Adviser, Energy and Climate Change

This call for evidence was published alongside the Energy White Paper in November 2020.

24 Mar 2021, 2 min read

The ‘Enabling a High Renewable, Net Zero Electricity System’ call for evidence was published in December 2020 alongside the Energy White Paper, and the CBI responded in March 2021.

Back in early 2020, government consulted on the proposed amendments to the Contract for Difference (CfD) fourth allocation round (AR4), see CBI response here. The CBI supports that the CfD has been, and continues to be, the most credible way of bringing forward high volumes of various types of renewable energy. As the UK transitions to net-zero, it is vital that the correct mechanisms are in place to ensure the high deployment of renewable energy required.

This recent call for evidence was published to help inform policy decisions on how renewables will be deployed beyond AR4 and what this could mean for the CfD mechanism going forward. The call for evidence posed questions on three key areas: maintaining growth in renewable deployment to meet net-zero targets, ensuring overall system costs are minimised for electricity consumers, and supporting and adapting to innovative technologies and business models.

The CBI responded by making several key points:

  • The CfD has been successful in procuring high volumes of low carbon power generation and continues to be the best way of providing a route to market for different forms of renewable power.
  • The CBI urges government to consider the impact on security of revenue when considering changes to the CfD scheme, and the impact that changes could have on investor confidence and ultimately the price paid by consumers.
  • The CBI recognises the role that the CfD could play in promoting co-located projects and wider system benefits like flexibility and storage services in the future, on the basis that these ultimately help improve the stability of supply and ensure low prices for consumers.

We look forward to the government’s response to this call for evidence, and eagerly await the completion of Allocation Round 4 later in 2021.

Read the full CBI response