Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 346
United Kingdom
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any DCO or planning consents cannot be
issued until it has been taken into account.
Applicants for an EIA should submit environmental statements with any planning applications, ask for a screening opinion (from
the local authority) or ask for a screening
decision (from the Secretary of State).
There may be other consents required, for
example a marine licence may be issued
by the MMO under the Marine and Coastal
Access Act 2009. An applicant for a DCO can
request this as part of a DCO.
4. OFFTAKE / PPA
4.1 Offtake, remuneration
and tariff scheme
The UK electricity market is liberalised and
there are many different market participants. Pricing support has varied over the
course of the UK’s development of offshore
wind. Background to the CfD, Investment
Contract and ROC support mechanism in
the UK is set out in section 2.3 above.
Under the CfD and Investment Contract
structure:
•
•
•
•
offshore wind generators sell their power
under a long-term power purchase agreement;
the generators are treated as having
captured a defined market reference for
that power under their CfD/Investment
Contract;
the generator will receive a ‘top up’
payment under their CfD/Investment
Contract if the market reference price
captured is less than the strike price at
which the CfD/Investment Contract was
awarded; and
the generator will be required to make a
payment to LCCC under their CfD/Investment Contract if the market reference
price captured is greater than the strike
price at which the CfD/Investment Contract was awarded.
