Question

To ask the Secretary of State for Energy and Climate Change, with reference to the Answer of 14 May 2014, Official Report, column 597W, on renewable energy, what the evidential basis was for the statement made in the Government's response on competitive allocation that Power Purchase Agreements could be signed on a conditional basis before a strike price needs to be submitted, allowing independent generators to receive indicative financing terms from lenders; and what representations he has received from generators on that statement.

The Government's response to the consultation on competitive allocation set out its expectation that the Power Purchase Agreement (PPA) market will evolve such that PPAs could be signed on a conditional basis. We have discussed this with stakeholders and have identified no significant barriers that prevent conditional Power Purchase Agreements being agreed prior to the allocation of Contracts for Difference. Furthermore, some PPA participants have since confirmed that they are prepared to consider approaches from generators on this basis.