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16 | 5TH - 11TH MAY 2017 | UTILITY WEEK Policy & Regulation Lobby Policy / Budget / Brexit Policy & Regulation CfDs on hold? Jamie Hailstone looks at the impact the snap general election could have on the future of the contracts for difference regime. T he victors in the general election won't be the only winners this summer. The renewable energy community will be waiting for the outcome of another selection process – the first of what was supposed to be three auctions for the second round of contracts for difference (CfD). The round, originally due to take place last year, was one of the subsidy regimes to have survive the great cull of 2015, when the now defunct Department of Energy and Climate Change heralded in a new pol- icy era. Last year, the government indicated that a total of £730 million would be up for grabs during the predicted lifetime of this parlia- ment, with three auctions before 2020. The window for bids for the first of these auctions ran from 2 April to 21 April and was hailed by energy minister Jesse Norman as underlining that "Britain is open for busi- ness to companies seeking to invest in low- carbon energy". As the bidding process started, there were several predictions that offshore wind would be the overall winner, as well as calls to let more established technologies, like onshore wind and solar, compete in a "pot one" style auction. But if a week is a long time in politics, then a month is an eternity. The initial bids are in, but there is now the slight matter of a snap general election on 8 June and what impact that will have on the future of the CfD programme. The government has said the current CfD allocation round will not be affected by the election, although the sector will have to wait until the summer to discover which pro- jects have been successful. The plan was for £730 million over the three auctions, to be held by 2020, with £290 million going to the first. However, the future of the next two auctions is now uncertain. They rely on the next government deciding it wants to press ahead with them. The chief executive of the Renewable Energy Association, Nina Skorupska, says: "Clearly, this is a significant area for the renewables industry and considering how important policy stability is for securing new power capacity and driving down technol- ogy costs, we urge all parties to commit to annual CfD auctions in the next parliament." But the chief executive of energy consul- tancy Cornwall, Gareth Miller, says he can envisage a situation where a Conservative government, returned with an increased "Whoever forms the next govern- ment, the benefits of decarbonising our energy system at the lowest cost to the consumer remain clear." Niall Stuart, chief executive, Scottish Renewables "Political parties should support a vibrant renewable energy sector if they want to be successful in government." Emma Pinchbeck, Renewable UK executive director "The risk from the election and the focus on Brexit is that key energy policy decisions get delayed further." Simon Virley, head of power and utilities, KPMG, and former director general for energy in the UK govern- ment' POLL TRACKER 60 50 40 30 20 10 0 25 06 16 03 07 16 11 07 16 22 07 16 02 08 16 15 08 16 22 08 16 31 08 16 14 09 16 23 09 16 09 10 16 20 10 16 25 10 16 04 11 16 18 11 16 27 11 16 11 12 16 19 12 16 12 01 17 17 01 17 31 01 17 06 02 17 14 02 17 22 02 17 09 03 17 15 03 17 19 03 17 02 04 17 13 04 17 18 04 17 20 04 17 22 04 17 Conservative Labour Lib-Dem Ukip Green source: UKpollingreport.co.uk