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Helping you make sense of the energy and water sectors

Market research & Insight

Issue 403 | Electricity Market Reform

Issue 403 | Electricity Market Reform

Tom Edwards Tom Edwards Senior Consultant

DECCElectricity Market Reform––Government response on Competitive AllocationElectricity Market Reform––a further consultation on the use of technology groupings, minima and maxima 20 May 2014 DECC issued its response to its consultation on the competitive allocation of Contract for Difference Feed-in Tariffs (CfD FiTs) under the Electricity Market Reforms (EMR) on 13 May. It confirmed that CfD allocation would progress on the basis of two groupings for the purposes of allocating the budget––established and less-established technologies––and there would be immediate competition for the established technologies achieved through setting the CfD budget for this grouping. No details were provided on the scale of budget allocation for each grouping; this is expected to be indicated when the initial CfD budget is published in the middle of July. Alongside the response DECC published an additional consultation document. The department is consulting on the treatment of projects in the Scottish Islands, and proposals to classify biomass conversion as an established technology, subject to competitive allocation, but under its own budget allocation pot. DECC is further consulting on the proposed singular application of maxima or minima in the form of a 100MW minimum allocation for wave and tidal stream power. This is a highly complex area and renewables developers will need to be familiar with these issues, which are the building blocks of the overall CfD allocation process, in order to prepare for the first CfD allocation round in mid-October 2014. We recommend that you read the documents and ...

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