Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 287
Offshore Wind Worldwide 2023
tent authority must assess its implications for the conservation objectives
of the relevant sites, before deciding
to undertake, consent to or otherwise
authorise the plan or project.
In the marine environment the Habitats Directive is given effect in UK law
through The Conservation of Habitats
and Species Regulations 2017, The Conservation of Offshore Marine Habitats
and Species Regulations 2017 and The
Conservation (Natural Habitats, etc.)
Regulations (Northern Ireland) 1995 (as
amended), collectively referred to as the
‘Habitats Regulations’.
Within the meaning of the Habitats
Regulations, The Crown Estate’s offshore
wind leasing rounds are plans and The
Crown Estate is a competent authority. The Crown Estate must, therefore,
undertake a Plan-Level HRA of its leasing
plan, which could result in the following
outcomes:
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(c) Contracts for Difference
New offshore wind projects are currently
eligible to compete for UK government
support through Contract for Difference
(CfD) auctions.
The CfD scheme is the UK government’s
main mechanism for supporting low-carbon electricity generation. CfDs incentivise investment in renewable energy by
providing developers of projects with
high upfront costs and long lifetimes
with direct protection from volatile
wholesale electricity prices, and they
protect consumers from paying increased support costs when electricity prices
are high.
In April 2023, The UK Government invited
input from renewable energy market
participants on potential changes to the
country’s contract for difference tariff
scheme.
See section 2.3 below for further details
of the UK’s CfD scheme.
• the leasing plan not adversely affecting the integrity of the European sites
concerned;
• mitigation measures being required
to ensure that the leasing plan will not
adversely affecting the integrity of the
European sites concerned;
2.3 Incentives for investments
(a) Contracts for Difference
As noted above, the CfD scheme is the
UK government’s main mechanism for
supporting low-carbon electricity generation. CfDs are awarded to prospective
developers through CfD auction/allocation rounds.
• the leasing plan adversely affecting the
integrity of the European sites concerned,
even with mitigation measures in which
case one or more projects in the Round 4
leasing plan may not be able to proceed.
Offshore wind and other renewable generators located in the UK that meet the
eligibility requirements can apply for a
CfD by submitting what is a form of ‘sea-
