BEIS has confirmed it will change Contracts for Difference (CfD) rules to exclude projects that fail to meet delivery milestones from participating in future auction rounds for 24 months.
The measure extends the existing non-delivery distinctive (NDD) exclusion period from 13 months.
The move will prevent any project which fails to sign, or terminates prior to or due to a failure to meet its delivery milestones – such as turbine procurement or other substantial investment – from entering the next round with the same site.
BEIS will also amend CfD regulations to make clear the project excluded under non-delivery is either whole or part of the generating site.
In the case of a CfD for a wind farm extension, the additional site would be excluded, not the site of the entire wind farm.
BEIS confirmed it would amend the ‘non-delivery case’ so that it captures termination occurring prior to 13 months post-CfD notification or due to a failure to meet the stages of delivery required by the milestone delivery date.
BEIS will also extend the exemption of NDD exclusion to projects which have terminated due to Sustainability Change in Law.
In its response to a consultation published in May, BEIS said it has laid draft regulations implementing the changes outlined in the response, and it intends for them to become law in time to apply to the second CFD allocation round.
Image: Greg Clark (BEIS)
