Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 289
Offshore Wind Worldwide 2023
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 of 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.
289
The graphic on the next page shows the ‘key
dates’ as they apply in the CfD.
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.
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 is intended 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.
