Source: https://tendernation.io/opportunities/01a13cb8-2805-738f-ac5b-a465d5c50402/renewable-energy-contract-for-difference-research

awarded GB open procedure Suitable for SMEs

# Renewable energy Contract for Difference Research

[Department for Business, Energy & Industrial Strategy](https://tendernation.io/buyers/department-for-business-energy-industrial-strategy)

Often single bidder

Estimated value

Not stated

Published

27 Mar 2023

Deadline

Closed

20 Feb 2023

## Who can bid

- Buyer says suitable for SMEs

    The buyer ticked “suitable for SMEs” on the notice. Anyone can still bid.
- Buyer says suitable for VCSEs

    The buyer ticked “suitable for voluntary, community and social enterprises” on the notice.
- Open procedure

    Anyone can submit a full tender; there is no shortlisting stage.

[More contracts for small businesses and VCSEs](https://tendernation.io/opportunities/for-small-businesses)

## About this tender

\*\*\*\*\* THIS IS AN AWARD NOTICE, NOT A CALL FOR COMPETITION \*\*\*\*\*

This procurement is being concluded following a mini competition via an Open market tender.

### Brief Description of Requirement

The application, purpose, outcome, or function of the services:

- This project is about understanding the potential impacts of valuing Non-Price

Factors (NPFs) in the Contracts for Difference (CfD) scheme (the government's

main renewable energy support scheme).

- Emerging challenges this could help tackle include:
- supply chain challenges (increased supply chains disruption from Covid

then war in Ukraine; surging global demand for renewable energy but

insufficient manufacturing capacity; UK and European supply chains facing

pressure in global markets), as well as

- the need to integrate an increasing proportion of variable renewables on the

grid. This includes increasing system flexibility, retaining system operability

and providing efficient locational signals to minimise system cost, mean that

the CfD auction needs to evolve. Non-Price Factors is one of the CfD

evolution options that is being considered as part of this evolution.

- Currently, both CfD allocation and the value of contracts awarded (reflected in

strike prices) are the product of a competitive auction purely based on

cost. Amending the scheme to value other factors in some way would require

material amendments, including possibly to auction structure and design.

- Since this is a significant reform to a complex government policy, we need to

understand a number of impacts associated to this policy namely: Value for Money

- implications for electricity consumers; NPF impacts on auction outcomes

(including any unintended consequences); impact on supply chains; and on wider

system integration and flexibility.

The implications for the users of implementing

Read full description

## CPV classification

Research and development services and related consultancy services

Source

Contracts Finder (UK)

[View official notice](https://www.contractsfinder.service.gov.uk/notice/567bd1e1-b052-4df6-a6c8-ac6ef494eabf)

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