Chart of the week | Tipping the cap: analysis of competition for CfD AR3

Qualification for the third allocation round (AR3) of the Contracts for Differences (CfDs) low-carbon support scheme is due to commence on 29 May. 

BEIS announced in November 2018 that participants in AR3 would be competing for an annual budget of £60mn, with successful bidders expected to commission in delivery years 2023-24 and 2024-25.  

In addition, this allocation round is capped at 6GW of capacity, and only open to Pot 2 “less established” technologies: advanced conversion technologies (ACT), anaerobic digestion (>5MW), dedicated biomass with CHP, geothermal, offshore wind, tidal stream, wave, and new for AR3 remote island wind (>5MW). This week’s chart shows our assessment of the potential pipeline of capacity, by technology, that could enter AR3.

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