CMA Subsidy Advice Unit clears Contracts for Difference Allocation Round 8 scheme after compliance review under the Subsidy Control Act 2022

The Competition and Markets Authority (CMA)'s Subsidy Advice Unit (SAU) published its final report on 4 September 2026, providing advice to the Department for Energy Security and Net Zero (DESNZ) on whether the proposed Contracts for Difference (CfD) Scheme Allocation Round 8 (AR8) complies with the requirements of the Subsidy Control Act 2022. CfD contracts are long-term agreements, running for 15 or 20 years, between a low-carbon electricity generator and the Low Carbon Contracts Company (LCCC). Under the mechanism, when the wholesale electricity reference price falls below the agreed 'strike price', the generator receives a top-up payment funded by a levy on electricity suppliers; when the reference price exceeds the strike price, the generator repays the difference. The scheme is the primary instrument through which the UK supports the deployment of renewable electricity generation. AR8 opened to applications on 20 July 2026 and covers a wide range of eligible technologies including offshore wind, onshore wind, solar photovoltaic, floating offshore wind (FLOW), tidal stream, and several others. A number of changes have been made to the scheme for this round following a consultation, among them: a new technology category for Other Deepwater Offshore Wind (ODOW); changes to floating offshore wind contractual terms, including an extended Longstop Period; alignment of CfD eligibility with grid connection reforms to exclude Gate 1 connection offers; and a permanent restriction on bidding previously surrendered CfD capacity into future rounds. For context, DESNZ estimated the total lifetime subsidy for contracts awarded in the previous round, , at in 2024 prices, with the largest individual contract estimated at . The SAU emphasised that AR8 figures may differ significantly. The SAU's referral was accepted on 29 July 2026 and the case was closed on 4 September 2026.