Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 151
Offshore Wind Worldwide 2023
cy plan is certified, the date the power
generation facility is scheduled to start
operating as described in the occupancy plan becomes the start date of the
facility’s operations. Suppose the supply
of electricity is started after this date.
In that case, the 20-year procurement
period is reduced by the number of days
the supply was late to start
d) Decommissioning
If a Selected Business Operator ceases to
occupy the sea area within the Promotion Zones, the power generation facilities
must be removed (decommissioned)
and in principle the area will need to
be restored to its original condition.
However, on the condition that the Act
on Prevention of Marine Pollution and
Maritime Disaster is complied with (for
example, by obtaining the permission
of the Ministry of the Environment with
respect to any disposals), it may also be
acceptable to prepare a decommissioning plan which contemplates leaving
part of the facilities in the area. The
decommissioning cost is uniformly set
at 70% of the cost of constructing the
facility in the ocean, but the amount and
basis for calculating it are not included in
the evaluation process for selecting the
business operator. In order to secure the
removal costs, a guarantee (i.e., decommissioning LC) or a document certifying
the accumulation of the decommissioning cost (these can be used together) must be submitted to secure the
decommissioning cost in full.
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e) Wind conditions and the results
of submarine geology surveys
For Happou, on 29 November 2021,
information has been provided on
the wind conditions and the results of
submarine geology and other surveys
conducted by the national government
to Happou.
This information is provided as technical
support to business operators, and it is
not sufficient to refer to the information
in question. Rather, business operators
must develop and implement appropriate business plans at their own responsibility. For example, due to the level of
accuracy of wind conditions and seabed
data, it is possible that the data provided
(and which the occupancy plan was based on) may deviate from the actual data
measured after the operator is selected.
The deviation in the data in such cases
may even suggest that the occupancy
plan is less commercially feasible than
initially contemplated, which could
naturally lead the operator to wish to
amend the occupancy plan to account
for this. However, while it is in principle
possible to amend the occupancy plan
in some circumstances, it is not possible
to amend it in such a way that would, if
it were evaluated in its amended form,
result in a lower evaluation of the plan.
Amendments that are highly likely to
lead to a lower evaluation are, for example, increases in the supply price. So in
general operators should understand
that it is not possible to increase the
