CfD Stakeholder Bulletin — August 2017
Summary
National Grid confirmed to BEIS that qualifying CfD applications exceed the available budget, triggering an auction process. Sealed bids will be requested between 14-18 August 2017 following completion of the qualification appeals process on 2 August. An independently audited auction will determine which projects receive contracts at what strike prices.
Why it matters
The oversubscription forces competitive price discovery rather than administrative allocation at preset prices. Projects must now compete on strike price rather than queue position, as such the auction mechanism prices access to subsidies rather than rationing them through administrative criteria.
Key facts
- •Qualification appeals completed 2 August 2017
- •Sealed bids requested 14-18 August 2017
- •Value of qualifying applicants exceeds budget
- •Independent audit required for auction
Timeline
Areas affected
Related programmes
Memo
Stakeholder Bulletin issued by the Department for Business, Energy & Industrial Strategy 3 August 2017 Dear Stakeholder, National Grid, in their role as the Delivery Body, has issued a stakeholder update setting out that on 2nd August, Ofgem completed the Qualification Appeals process. They also set out that today they have confirmed to BEIS that the value of the qualifying applicants exceeds the budget and it is their intention to run an auction. National Grid intend to request qualifying applicants to submit sealed bids between 14 and 18 August 2017, in line with scenario 1 of the Implementation Plan following which they shall run an auction which will be audited by an independent body. Further communication is expected to be issued by National Grid on the 11 August 2017. Kind regards, The BEIS Contracts For Difference Team