To help developers of low carbon electricity projects make final investment decisions ahead of the Contract for Difference regime being put in place as part of Electricity Market Reform
The Government’s Final Investment Decision Enabling programme is designed to enable developers of low carbon electricity projects to take final investment decisions ahead of the Contract for Difference regime being put in place as part of Electricity Market Reform.
DECC launched Final Investment Decision (FID) Enabling for Renewables in March 2013. Applications for participation in FID Enabling for Renewables closed on 1 July 2013. DECC published details of the process, evaluation criteria and indicative timetable for Investment Contract allocation on 27 June 2013.
On 4 December 2013, DECC published a summary of the applications that applied and qualified through Phase 2 of the programme, including details of the FID Enabling for Renewables affordability envelope and an indicative timetable for the contract award process. All applicants that met the Phase 2 minimum threshold evaluation criteria were sent draft investment contracts on 19 December 2013, (based on the draft CfD standard terms and conditions, published in FiT Contract for Difference: Standard Terms and Conditions) and were invited to submit binding applications, confirming that they wish to apply for an investment contract, by March 2014.
On 23 April 2014 DECC announced that eight renewable electricity projects have been offered investment contracts, allocating the first CfDs that are being introduced through the Electricity Market Reform programme. The projects include offshore wind farms, coal to biomass conversions and a dedicated biomass plant with combined heat and power. By 2020, the projects will provide up to £12 billion of private sector investment, supporting 8,500 jobs, and they could add a further 4.5GW of low-carbon electricity to Britain’s energy mix (or around 4% of capacity), generating enough clean electricity to power over three million homes. We expect the investment contracts for the successful projects to be signed and laid in Parliament in May 2014, which is when they will take legal effect.