Eight major renewable electricity projects were awarded Investment Contracts (early Contracts for Difference) under the Government’s reform of the electricity market on 23 April 2014. These contracts have been signed by the project developers and on behalf of the Secretary of State for Energy and Climate Change.
In accordance with the Energy Act 2013, the signed contracts were laid before both Houses in Parliament on 4 June 2014. As required by the Energy Act 2013, each was accompanied by a statement from the Secretary of State for Energy and Climate Change covering the matters required by the Act, setting out:
(a) the duties of the Secretary of State under sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon targets and budgets);
(b) the duty of the Secretary of State under section 1(1) of the Act (decarbonisation target range);
(c) ensuring the security of supply to consumers of electricity;
(d) the likely cost to consumers of electricity;
(e) the target set out in Article 3(1) of, and Annex 1 to, the renewables directive (use of energy from renewable sources).
These statements and contracts are published here. (Note that these documents include scanned images of the contracts.)
The Government intends to transfer the Investment Contracts to the CfD counterparty once secondary legislation is in place such that all of the following three conditions are met:
(a) a definition of an “eligible generator” is in force;
(b) the CfD counterparty has been designated as such; and
(c) regulations are in force making provisions for electricity suppliers to pay the CfD counterparty for the purpose of enabling them to make payments under CFDs.