Offshore Wind Worldwide 2022 edition - Flipbook - Page 77
Offshore Wind Worldwide 2022
procedure (guichet ouvert), only the floating
installations awarded by specific French or
European calls for proposals are eligible to
the general, fixed price feed-in tariff
scheme.31 Actually, this scheme is more
generally only applicable to some
installations generating renewable energies
that are less mature and/or of a weak power.
Under the CfD/feed-in premium scheme,
created by the law dated 17 August 2015
relating to energy transition for green
growth, the electricity produced by the OWF
is sold by the operator on the electricity
market at the market price, but the producer
gets compensation depending on the
reference tariff (instead of a price) that it
fixed in its bid. The producer’s income
gained by the sale of its electricity on the
market is completed by a bonus calculated as
the difference between the market price and
the reference tariff.
As under the CfD/feed-in-tariff scheme,
bidders propose reference tariffs in
accordance with a capped tariff defined by
the tendering authority, and then conclude a
contract with EDF – called a feed-in
premium contract (“contrat de complément
de rémuneration”).32
The CfD/feed-in premium scheme has been
used in the Dunkirk OWF project.
Under this tender’s specifications, the CfD/
feed-in premium contract lasts 20 years from
the latest of these two dates: (i) the effective
completion date of the entire installation;
31 Articles L.314-1 3° and D.314-5 of the Energy Code.
32 Article L.311-13-2 of the Energy Code.
33 Articles R.311-27 and R.311-27-1 of the Energy Code.
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and (ii) 12 months after the longstop date
imposed on RTE to make grid connection
facilities available for the OWF.
Both PPA and CfD contracts are standard
documents with limited risk transfer and
little if any negotiation margins for bidders.
Templates are drafted by EDF, approved by
the Minister in charge of energy and attached
to the tender specifications, without the
possibility of a mark-up.
They have to be executed within six months
from the request of the successful bidder.
They are both attached to the offshore wind
installation and stay in force during the
installation’s life, within the duration stated
in the tender specifications.33
Among the offshore wind installations, only
those implemented through a tender process
are eligible to a CfD. In other words, no
offshore wind installations implemented
outside a tender procedure’s scope can
benefit from an additional remuneration.
B. Consequences of a project delay
Under the first and second calls for tenders,
PPAs are concluded for a period of 20 years
starting at the completion of each tranche.
However, the duration of the PPAs may be
reduced in case of delay due to risk events
borne by the operator, up to 50% of the
delay’s duration, or postponed in a number
of instances as a mitigate for shared risk
events. It can be postponed before
commissioning, in case of a grid connection