The Government has today published a policy paper, "investing in Britain's future". Of significant interest to the energy sector, among other things it contains (on page 30) the long-awaited draft strike prices for renewable technologies under the contracts for difference regime.
The regime is intended to form the framework to encourage major investment in low carbon generation in the UK. Further information about it can be found in our previous alert.
The paper suggests that the draft strike prices are broadly comparable to the support levels under the Renewables Obligation (RO) but adjusted (or discounted) to reflect the increased certainty the regime provides for generators.
Developers and funders will no doubt form their own views on whether the proposed adjustments are appropriate when the detailed analysis on the calculation methodology is published in July. According to the Treasury they will deliver savings to consumers of approximately £5 billion to 2030, when compared to the current RO regime. The final strike prices will be known in December following consultation on the proposals.