None of the holders of the 27 Contracts for Difference from the UK’s government’s 2015 allocation round have achieved their milestone delivery requirements.
Neil McDermott, chief executive of the Low Carbon Contracts Company, warned that some projects given CfDs last February may struggle to meet the 27 March delivery deadline.
The milestone can be satisfied by either spending 10% of a project’s capital expenditure or demonstrating substantial “project commitment”.
McDermott said that while some projects may not meet their requirements, he expects the “majority” of milestones will be met.
If a project fails to meet the deadline the LCCC has the right, although not the obligation, to terminate a CfD contract.
McDermott said some contracted generators could seek to extend the deadline however the LCCC did not “take lightly” extension requests.
He said it expects generators to fulfil their commitments in the CfD contracts and that no extensions have yet been agreed.
There are also outstanding milestone deadlines for some of the FID enabling regime investment contracts awarded in 2014, McDermott added.
Image: DECC (Lesteph)
