Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 344
United Kingdom
344
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1.5 ROCs for projects accredited from
July 2006 – March 2010
•
2.0 ROCs for projects accredited from
April 2010 – March 2015
•
1.9 ROCs for projects accredited from
April 2015 – March 2016
The graphic on the next page shows the ‘key
dates’ as they apply in the CfD.
•
1.8 ROCs for projects accredited from
April 2016
The CfD comes into effect when it is signed
and dated by the parties, subject to certain
initial conditions precedent and further conditions precedent. The generator is required
to trigger the start date by a prescribed
longstop date set out in the CfD. Provided
that the generator achieves the start date
during a prescribed target commissioning
window, the agreed term of the CfD is preserved. For each day of the longstop period
(between the end of the target commissioning window and the longstop date), during
which the start date has not occurred, the
CfD term is reduced. Following the longstop
date, LCCC is entitled to terminate the CfD.
ROCs have a market value and operators
can trade ROCs with other parties. ROCs are
ultimately used by suppliers to demonstrate
that they have met their obligation.
2.4 Timeline for the realisation of the project
There are various time limits that apply to
the realisation of an offshore wind project in
England and Wales including:
•
•
a 10-year option period that applies
under the Agreement for Lease entered
into by a prospective offshore wind developer with The Crown Estate in which
the prospective developer must satisfy
the milestone conditions to proceed to
the grant of a Lease;
time limits that apply in relation to participation by the prospective offshore
wind developer in CfD auctions;
•
time limits that apply under the CfD
contract itself, which can result in a reduction in the level of financial support
received by a project or the termination
of the CfD.
In February 2022, the UK Government announcement that the frequency of auctions
for funding through the CfD scheme will
change to every year, rather than only once
every 2 years. This change was to support
renewable electricity producers and boost
the UK’s renewable energy infrastructure, by
allowing a more regular cycle of CfD auctions to take place.
