CfD Stakeholder Bulletin — November 2018
Summary
DESNZ published Supply Chain Plan Guidance for CfD Allocation Round 3, requiring projects of 300MW or more to obtain supply chain certificates before bidding. The guidance includes minor changes requiring developers to submit post-build reports and providing more detail on monitoring processes. A new resource portal consolidates information from all CfD delivery partners with query management services.
Why it matters
This maintains the supply chain plan barrier to entry for large projects, adding administrative burden without changing the fundamental queueing mechanism for CfD allocations. The centralised portal reduces information asymmetries but does not address the core issue that CfD allocations remain rationed by budget caps rather than priced by market mechanisms.
Key facts
- •300MW threshold for supply chain plan requirement
- •30 working day assessment target for plans
- •Spring 2019 allocation round confirmed
- •Query response targets: 2 days single partner, 5 days multiple partners, 10 days government input
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 26 November 2018 Supply Chain Plan Guidance published Following Claire Perry’s announcement of the budget for the next CfD allocation round in spring 2019, the government has published the Supply Chain Plan Guidance. This Guidance sets out details of how projects of 300MW generating capacity or more can apply for a supply chain certificate, certifying that they have an approved Supply Chain Plan for their project and proving their eligibility to bid in to the next CfD allocation round. There have been minor changes to the guidance since it was last published, mainly to reflect the requirement for developers to sumbit an Interim Post Build Report or Post Build Report and to provide more detail on the Supply Chain Plan Monitoring Process. The Department will publish information on the dates of the Supply Chain Plan Application Window in due course. We will endeavour to assess the plans within 30 working days, although borderline cases may take longer. The guidance is available here: https://www.gov.uk/government/publications/supply-chain-plan- guidance-contracts-for-difference-allocation-round-3 Allocation Round 3 Resource Portal launched We are pleased to be launching on behalf of the CfD Delivery Partners (LCCC, EMR Delivery Body and Ofgem), a new Allocation Round 3 Resource Portal. The portal has been launched in response to stakeholder feedback from previous rounds, and it aims to provide: • A Single source of information– links to all key information from the BEIS, LCCC, EMR Delivery Body and Ofgem sites. • Timely notifications – you can sign up to receive an email each time new information relating to Allocation Round 3 is made available by any of the delivery partners. • Joint Query Management – if you can’t find what you are looking for on the site or in the FAQs, you can submit your queries via the site and we will work together to either improve the information available or provide you with a single answer to any project specific questions. Where one partner can respond to a query, our aim is to respond within 2 days. Where more than one party needs to input on the response, our aim is to respond within 5 working days. Should the query require wider government input, our aim is to respond within 10 working days. Visit the site here: https://www.cfdallocationround.uk/ 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’ (or, if the receiving e-mail you use is different to the one you send e-mail from, including 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 the list until (a) you withdraw your consent to opt in, (b) the scheme closes without any successor, (c) we receive reports your e-mail address is no longer operational, or (d) you do not respond to a periodic request from us to reconfirm your desire to opt