Contracts for Difference (CfD)

Contracts for Difference in a Nutshell

The Contracts for Difference scheme (CfD) was established in 2014 to support the UK’s journey to Net Zero. In its simplest form, the CfD is a contractual mechanism designed to incentivise investments in renewable energy projects in the UK at the least cost to the consumer.

Since 2014, the CfD scheme has successfully facilitated investments in 29.4 gigawatts of renewable energy generation (including nuclear), with 6.4 GW currently operational. In 2022, projects managed under CfD’s generated enough energy to power 7 million homes and mitigated  5,822,352 CO2 emissions.