Brussels investigates whether new UK CFD rules violate EU-UK trade agreement – Energy newspaper صحيفة

The European Commission is reviewing UK government plans to stimulate more local content while building and operating new offshore wind farms. To decide whether to breach existing trade agreements.

The UK Department of Energy, BEIS, has outlined plans to introduce a new ‘Supply Chain Plan Questionnaire’ that developers must complete to qualify for the 12GW CfD4 subsidy auction, which will open later this year.

Surveys require developers to describe their purchasing strategies in detail, which are then used to “pass” or “fail” supply chain plans that auction winners must submit to BEIS.

Projects with supply chain plans that fail this assessment may be stripped of their support under controversial new legislation introduced last month.

It is understood that the plans, spearheaded by Prime Minister Boris Johnson, angered policymakers in Brussels and prompted the European Commission to launch an assessment of the UK government’s new supply chain measures.

The sources said Brussels was keen to determine whether the new rules would force developers to use local content and whether this would violate existing trade agreements between the European Union and the United Kingdom.

The Commission is also assessing whether the proposals comply with the UK’s commitments WTOSources added.

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