UK offshore developers should expect "earlier certainty", says Davey

UK: Offshore wind developers should expect "much earlier certainty" about the price they will receive for electricity generated, thanks to the UK's incoming financial support scheme, according to energy minister Ed Davey.

by Erin Gill 18 October 2012

UK energy minister Ed Davey
Davey's comments also suggest that offshore wind developers are among a handful of companies already in discussions with the government about an early form of the new financial incentive scheme.

Speaking at a Confederation for British Industry (CBI) event today, Davey provided more information about how the UK government envisages its new contracts for difference (CfDs) regime, due to replace the existing renewables obligation (RO) scheme from 2017.

Davey confirmed that the UK Department of Energy and Climate Change (DECC) is in bilateral talks with six wind and biomass developers about so-called final investment decision (FID) enabling agreements.

These are to be forerunners to CfDs, allowing developers to agree a long-term level of financial support from government for a handful of large-scale, near-term projects.

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