Question

To ask the Secretary of State for Energy and Climate Change, how much in public subsidy he expects to allocate to the proposed wind farm at Navitus Bay.

The Government set out the Allocation Framework for Contracts for Difference (CfDs) on 13 May 2014, which has the potential to improve value for money, encourage new entry and drive innovation.

Indicative CfD budgets will be published in July. CfD allocation rounds will then determine which projects are successful and receive CfD contracts and at what level of support. It is not possible to say in advance which projects will receive support and at what level.

Offshore wind projects, classified as ‘less established' technologies, are able to receive support in this Delivery Plan period (2014/15-2018/19) at the administrative strike prices published on 4 December 2013, unless there is insufficient budget in a CfD allocation round to satisfy all bids then an auction (competitive allocation) will apply. Those technologies would then have to compete against each other on price whereby each project is paid the clearing price for its delivery year within the auction, capped at its administrative strike price.