Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 97
Offshore Wind Worldwide 2023
4.2 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 to mitigate shared risk events.
It can be postponed before commissioning,
in case of a grid connection taking longer
than six years after the award of the projects
claim against an administrative authorisation and judicial proceedings exceeding
54 months, administrative proceedings
in respect of the authorisation to use the
maritime public domain and other environmental authorisations exceeding six
months, or in case of "imprévision" events
(i.e., hardship/unforeseen events). It can also
be postponed, after commissioning, in case
of "imprévision" or unavailability of the grid
system.
Under the third tender (Dunkirk OWF) procedure, the duration of the CfD is reduced
if the deadline for commissioning is not
respected. It is reduced by the number of
days between the effective date of commissioning and the contractual deadline for
commissioning.
97
Before commissioning, the duration of the
CfD can be extended under certain circumstances in a number of instances. These
instances are that of:
(a) a delay in the grid connection facilities’
commissioning which cannot be indemnified according to the specifications (on
this indemnification process, see section
5 below);
(b) a claim against an administrative authorisation;
(c) the delayed delivery of the authorisation
to use the public domain – i.e., more than
12 months after the request;
(d) the late delivery of the environmental
authorisation – i.e., more than 18 months
after the request;
(e) a pending claim against the decision of
the Minister in charge of energy awarding
the project to the successful bidder or
EU Commission decision on the compatibility of the tender with the domestic
market, whereas claims against administrative authorisations are served; or
(f) the recognition by the Government of a
ground for an excusable event/exemption of liability.
