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CMA unit to review proposed renewables subsidy scheme

The Subsidy Advice Unit (SAU) has accepted a request from the Department for Energy Security and Net Zero (DESNZ) to review its proposed Contracts for Difference (CfD) Allocation Round 8 (AR8) scheme.

  • The SAU will prepare a report evaluating DESNZ's assessment of the scheme's compliance with subsidy control requirements.
  • The CfD scheme, established in 2014, aims to encourage low carbon electricity generation.
  • Allocation Round 8 opened for applications on 20 July 2026 for eligible renewable electricity generating stations in Great Britain.

The Subsidy Advice Unit (SAU) has confirmed it will provide advice to the Department for Energy Security and Net Zero (DESNZ) regarding its proposed Contracts for Difference (CfD) Allocation Round 8 (AR8) scheme. The SAU accepted the request today, 29 July 2026, for what is described as a Subsidy Scheme of Particular Interest.

The SAU's role will be to prepare a report evaluating DESNZ's assessment of whether the subsidy scheme complies with subsidy control requirements. This report is expected to be completed within 30 working days.

The CfD scheme, which has been in place since 2014, is designed to support low carbon electricity generation. AR8 opened for applications on 20 July 2026, inviting bids from eligible renewable electricity generating stations in Great Britain. The scheme involves long-term contracts, typically 15 or 20 years, between generators and the Low Carbon Contracts Company (LCCC).

Changes for AR8 include a permanent restriction on bidding previously surrendered CfD capacity, the exclusion of applications with Gate 1 connection offers, and the introduction of a new technology category for Other Deepwater Offshore Wind (ODOW).

Why this matters: The CfD scheme is designed to encourage low carbon electricity generation, contributing to the UK's renewable energy capacity.

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