The Government will pause next year’s Allocation Round 9 (AR9) in order implement reforms aimed at reducing consumer energy bills.

Minister for energy Michael Shanks said that the pause will allow the Government to look at significant changes to the Contracts for Difference (CfD) scheme.

The pause will raised concerns for developers and investors, who will always need certainty before committing capital, with UKSIF CEO James Alexander saying: “Investors will be deeply concerned by comments from the energy minister today that cast doubt on next year’s renewable energy auction (AR9). The Contracts for Difference model has been a crucial driver of investment in clean power, helping to secure record offshore wind capacity this year and build a world-leading renewables sector.”

Shanks stated that the pause before AR9 was necessary in part to combat ‘curtailment’ costs, when wind farms are paid to switch off because the grid cannot cope. Recently Neso paid an estimated £49m in balancing costs, a potential new record.

The current AR8 round is unaffected, however, it has been placed on a prolonged timeline, with results now expected in February 2027.

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