Procurement: Renewable Energy
The question
To ask the Minister for the Cabinet Office, what discussions he has had with the Secretary of State for Energy Security and Net Zero on extending the Procurement Act and Procurement Policy Note for Steel to Contracts for Difference.
Answered by Chris Ward
Procurement Policy Notes issued by the Cabinet Office apply to all central government departments, non-departmental public bodies and executive agencies in line with the Cabinet Office's policy remit and apply to contracts in scope of the Procurement Act 2023.
Contracts for Difference (CfDs) act as a revenue guarantee scheme and therefore do not fall within the scope of the Procurement Act and related Procurement Policy Notes do not apply.
The Government remains committed to ensuring that projects supported by public funds, such as Contracts for Difference align with national priorities for economic growth. For offshore wind Contracts for Difference, the Clean Industry Bonus offers extra revenue to applicants who choose to invest in the economic, social and environmental sustainability of their supply chains, and for the latest Clean Industry Bonus round (which opened in May 2026), offshore wind developers can include UK steel manufacturers in their applications.
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