The table below summarises the timetable to the CfD auction process.
Click here to view table.
Outlined below are some of the key issues which were discussed at a recent CfD workshop we participated in:
- Bidders will have to ensure that they are eligible and then qualify.
- Number of bids – yet to be confirmed, suggestion it may be as much as 10 bids, each bid has to have a different price. Lowest bid considered first. Highest clearing bid sets the price for all other technologies within that pot, subject to any strike price for an specific technology not being higher that the administrative strike price for that technology.
- Bids to cover financial years 2015/16 to 2018/19.
- Next allocation, not yet confirmed – not before next election and accordingly, likely to be at end of 2015.
- LCF has 20% headroom for interim issues i.e. windy years, but not for additional projects.
- Above timetable will be very much subject to any appeals, Ofgem ‘intend’ to process appeals within 30 days. The allocation process will be delayed pending any Ofgem appeals. Any appeals to the High Court, will sit outside the allocation round i.e. the allocation process will not be delayed. Secretary of State has the discretion to alter the timetable.
- Planning eligibility condition does not include works and planning for which the distribution network operator (DNO) or transmission system operator (TSO) are responsible.
- An applicant cannot apply for a CfD once accredited under the RO (other than conversion). Once an applicant has bid and is offered a CfD but refuses to sign or is terminated, it cannot apply for the Renewables Obligation (RO) and cannot participate in an allocation round for 13 months.