CfD Stakeholder Bulletin — February 2019
Summary
BEIS published exemption procedures for generators at sites excluded from CfD Allocation Round 3 under Non-Delivery Disincentive rules. Excluded sites must apply for exemption certificates by 15 March 2019 to participate in AR3, which will commence by 29 May 2019. Sites that failed to meet Milestone Delivery Dates from previous CfD awards face temporary exclusion unless exempted.
Why it matters
This administrative notice reinforces the existing penalty structure for CfD non-delivery but creates an escape valve that may undermine the deterrent effect. The exemption process allows developers to re-enter auctions after failing to deliver, potentially weakening the mechanism designed to prevent speculative bidding.
Key facts
- •Exemption applications due 15 March 2019
- •AR3 commencement targeted for 29 May 2019
- •Sites excluded for missing Milestone Delivery Dates from previous awards
- •No participation allowed without exemption certificate
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 14 February 2019 Publication of the Exemptions Request Notice On 14 February, the government published an Exemptions Request Notice for CfD allocation round 3, which is planned to open by May 2019. Under CfD regulations, the Non-Delivery Disincentive aims to encourage generating stations at certain sites that have been awarded a CfD to sign their contracts and meet their Milestone Delivery Date. If they fail to do so, the site can be temporarily excluded from participating in the next CfD allocation round. The Exemptions Reqest Notice sets out the process that eligible generators must follow if they want to be exempted from a temporary site exclusion and compete in Allocation Round 3. If generators located at an excluded site do not apply for an exemption, then they will not be able to participate in the forthcoming round. Details of which sites are currently excluded can be found on the Low Carbon Contracts Company (LCCC) website. Any request for an exemption certificate must be made by 15 March 2019. Any request for an exemption certificate must be sent to BEISContractsForDifference@beis.gov.uk. As part of this notice we have also published a prospective commencement date for AR3 of 29 May 2019. The commencement date for AR3 will be confirmed in the Allocation Round notice, which will be published in due course. This commencement date could be earlier or later than 29 May 2019, but it will not be before 1 May 2019. General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contract for Difference stakeholder contact list. We issue these stakeholder bulletins as a convenience to interested parties, however it is not in any way essential to be on this list to participate in major consultations or allocation rounds. Purpose & scope of this list: This list is managed by the Department for Business, Energy and Industrial Strategy (BEIS) (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contract for Difference scheme for renewable energy projects (and any direct successor schemes). It is not used for any other purposes. To be removed from the circulation list: Please send a blank e-mail with the subject ‘opt out’ (if the receiving e-mail you use is different to the one you send the e-mail from, include that e-mail address in the subject of the e-mail) to BEISContractsForDifference@beis.gov.uk. If you have received this indirectly and want to be added to this list: Send a blank e-mail with the subject line ‘opt in’ to BEISContractsForDifference@beis.gov.uk. You can withdraw your consent to opt in at any time. We will normally keep your address on this list until you: a) withdraw your consent to opt in, b) the scheme closes without any successor, c) we receive reports your email address is no longer operational, or d) you do not respond to a periodic request from us to reconfirm your desire to opt in.