Evaluation of the Contracts for Difference scheme

This document describes a comprehensive evaluation of the UK's Contracts for Difference (CfD) scheme, designed to encourage investment in renewable energy by stabilizing prices and minimizing economic costs. The scheme has been successful in attracting investment, particularly in offshore wind, and has driven competition, leading to significant cost reductions. The evaluation, conducted by various organizations using a mix of methodologies including interviews, surveys, and financial analysis, found that the CfD scheme is more cost-effective than its predecessor, the Renewables Obligation scheme, potentially saving consumers up to £3 billion. While the scheme has reduced investment risks and attracted a wider pool of investors, it has also presented challenges such as complex application processes and potential allocation risks that may deter some investors. Despite these challenges, the scheme is on track to meet renewable energy targets and is generally effective, though improvements are suggested for supporting a broader range of technologies in future allocation rounds. **This summary was written by an AI model and therefore should not be considered a definitive summary of the report. If you are aware of inaccuracies, please email evaluation.registry@cabinetoffice.gov.uk.**

Description

• Lead department: Department for Business, Energy & Industrial Strategy
• Evaluation stage: A complete evaluation report
• Other departments: No other departments listed
• Evaluation types: Impact evaluation; Process evaluation
• Impact methods: Theory-based methods
• Theory-based methods: Other
• Process methods: Individual interviews; Other; Other; Surveys and polling
• Grant information: This intervention is not distributing funding via a grant
• Government Major Project information: This intervention is not a major project
• Policies: No policies provided

Event Dates

• Event Name: Publication of final results
• Event date: June 2019

Evaluation Costs

• Cost: Not provided

Evaluation sharing

• Link(s) to published report(s): Yes
• Links to evaluation plans: No link provided
• Findings: Not provided
• Permission to share confirmed: Yes