Wind Power

(asked on 26th June 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of including binding contractual clauses for supply chain plan estimates in future contract for difference offshore wind projects.


Answered by
Kwasi Kwarteng Portrait
Kwasi Kwarteng
This question was answered on 6th July 2020

The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.

The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.

We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.

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