DECC is proposing to exclude Contracts for Difference projects that fail to meet delivery milestones from participating in future auction rounds for 24 months.
The department’s plan would extend the existing 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.
DECC said it was increasing the time period because the initial 13-month exclusion was drawn up in anticipation of annual CfD auctions.
In March, the Treasury there would be three CfD auctions during this Parliament, with the first due by the end of the year.
DECC also proposes to amend 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.
DECC will consult on the proposals until 22 June.
Image: Amber Rudd (DECC)
