United Kingdom

United Kingdom

Over 2.6GW of UK wind reaches CfD milestones

UK: Seven wind projects with a combined installed capacity of 2.62GW, have reached contractual milestones set in the contract for difference agreements awarded in 2014 and 2015.

One of RWE's onshore UK projects met the contractual milestones
One of RWE's onshore UK projects met the contractual milestones

The Low Carbon Contracts Company (LLC), in charge of managing the CfD process on behalf of the UK government, said developers must reach one of two milestones on their projects.

Either they must spend equal to 10% of the expected project pre-commissioning costs, or show they have project commitments from the supply chain and the means to finance a project.

The LCCC said 27 renewable energy projects have reached the milestones to date, including the seven wind projects announced today.

A total of 17 wind projects were awarded CfD's in February 2015 as part of the new support scheme being introduced in the UK.

Four onshore wind projects — all in Scotland — have reached at least one of these milestones following the first CfD auction.

The 30MW Solwaybank project developed by RES, RWE's 26.65MW Bad a Cheo, the 18.8MW Tralorg owned by Brookfield Renewable UK and Infinergy's 39.1MW Tom nan Clach all met the conditions.

Three offshore projects have met their contractual agreements, including ScottishPower Renewables' 714MW East Anglia One project, one of two offshore projects to win contracts in 2015's auction.

The second, Mainstream Renewable Power's 448MW Neart Na Gaoithe project in Scotland is currently in arbitration with the LCCC, despite the government company cancelling the contract because of missed deadlines.

Mainstream said it had entered arbitration before LCCC cancelled the agreement and rejected the validity of the notice.

Neart Na Gaoithe has been delayed in awaiting a judicial review to be completed on the project's potential impact on wildlife.

The two remaining projects to reach the milestone were Dong Energy's 1.2GW Hornsea Project One and the SSE-led 588MW Beatrice site.

Both projects have been given final investment decisions (FID) by their owners in the first half of 2016. Both were handed FID-enabling contracts for difference deals – with a higher strike price – by the UK government in April 2014.

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