Contracts For Difference

Contracts For Difference
Implementation Coordination

Agenda 21st July 2014 09: :00 Introduction & Measures of Success 10: :25 CfD Allocation Process Overview 10:25 – 11:10 Systems Overview 11:10 – 11:25 Coffee 11:25 – 12:00 User Registration 12:00 – 12:50 Application, Qualification & Disputes 12:50 – 13:30 Lunch 13:30 – 13:50 CfD Valuation 13:50 – 15:00 Allocation, Audit and CfD Notification 15:00 – 15:20 15:20 – 16:00 Implementation Next Steps & Q&A

Implementation Coordination Aims
Enable readiness to participate in the CfD Engage with delivery partners Agree measures of success Develop and maintain implementation issues log Communicate policy related issues to DECC

The Team John Perkins (CfD Manager) Ian Woolley (EMR I.S. Manager)
Paul Mullen Yasharn Smith Nisar Ahmed Giampaolo Panizio Ian Woolley (EMR I.S. Manager) James Greenhalgh (EMR Stakeholder Manager)

Engagement Why? Understand what implementation planning you need to do to be ready to participate. Develop internal capabilities and processes to ensure readiness How? Engage in the process to ensure successful delivery Today and future I.C events August (with LCCC) Sept (with LCCC) Oct (With LCCC) Bilateral meetings

Measures of Success CfD Implementation Success What does successful implementation look like? I.T. systems available in time maximum participation in allocation Positive allocation outcome

Measures of Success On Your tables please discuss the subject:
What does successful CfD Implementation look like? Appoint a scribe and someone to feedback to the room 10 mins group discussion 10 mins feedback

Delivery Partners Signing and ongoing management of CfD contracts
Setting Legislation & Energy Policy Delivery Body Regulates Market (inc EMR) EMR Settlement Agent

Jun Jul Aug Sep Oct Timeline leading up to first Allocation Round 2014
Secondary Legislation and license changes come into force AF Publication & Regs laid Contracts Minor & Necessary change request Jun Jul Aug Sep Oct DB Publish Round Guideline 2014 Initial CfD Budget Published Final Supply Chain Guidance Submit supply chain plans Latest date for Budget Notice, Allocation Round Notice and Framework Notice Application Round Start

CfD Overview CfD Overview

CfD Legislative Update
Energy Act 2013 CfD (Definition of Eligible Generator) Regulations CfD (Allocation) Regulations Allocation Framework Budget Notice Allocation Round Notice Framework Notice CfD(Electricity Supplier Obligations) Regulations CfD (Standard Terms) Regulations EMR(General) Regulations SOS Direction Regulations (not currently laid) Offtaker of Last Resort Regulations EU State Aid Approval

Allocation Round Notice
Key Round Documents (1) Allocation Process Valuation Methodology Allocation Framework Start and End Dates Application Closing Date Delivery Year(s) Any Technology Restrictions Allocation Round Notice

Framework Notice Budget Notice Key Round Documents (2)
Links an Allocation Framework to an Allocation Round Framework Notice Overall Budget Administrative Strike Prices May set Minima, Maxima and Pot (Sub) budgets Budget Notice

CfD Process – End to End 1. Pre-Application Activities 2. Application
3. Qualification 4. Review 5. Appeal 6. Valuation 7. Sealed Bids 8. Allocation & Independent Audit 9. Allocation Notification

Allocation & Independent Audit
Application Qualification Review Appeal Valuation Sealed Bids Allocation & Independent Audit CFD Notification

>=300MW submit Supply Chain Plan Minor & necessary change requests
5. Appeal 6. Valuation 7. Sealed Bids 8. Allocation & Independent Audit 9. Allocation Notification 1. Pre-Application Activities 2. Application 3. Qualification 4. Review Applicants >=300MW submit Supply Chain Plan Minor & necessary change requests Registration Requests Round Opens Supply Chain Plan Assessment Allocation Framework, Allocation Round Notice & Budget Notices Training, Production of User Guides and Round Guidelines Process Registration Requests Minor & necessary change process

Round Variation / Budget Revision Notices
5. Appeal 6. Valuation 7. Sealed Bids 8. Allocation & Independent Audit 9. Allocation Notification 1. Pre-Application Activities 2. Application 3. Qualification 4. Review Applicants Request Review Request Appeal Apply Round Variation / Budget Revision Notices Assess Eligibility Qualified Applicants Review RO Check Appeal

Round Variation / Budget Revision Notices
5. Appeal 6. Valuation 7. Sealed Bids 8. Allocation & Independent Audit 9. Allocation Notification 1. Pre-Application Activities 2. Application 3. Qualification 4. Review Applicants Submit Sealed bids if requested Round Variation / Budget Revision Notices Value qualified applicants Request sealed bids if required Allocation & Independent Audit

Allocation Reports Review
5. Appeal 6. Valuation 7. Sealed Bids 8. Allocation & Independent Audit 9. Allocation Notification 1. Pre-Application Activities 2. Application 3. Qualification 4. Review Applicants Round Closes Contract Signature Allocation Reports Review CfD Notification Issue Contracts

Systems

High Level Architecture Reminder
External Parties Energy Industry & Trade Associations Existing Generators Prospective Generators DSR Aggregators Northern Ireland Parties (SONI) Ofgem DECC Counterparty & Settlement Agent Comms Channels Web Secure User Authentication Public Portal Participants (market) Private Authentication Service Alerts & Notifications FAQ & Guidance Administration System CRM CfD Admin CM Admin Auction Service Eligibility Pre-Qualification Companies & Users Auction System Allocation Comms & Queries Appeal Mgmt Obligation Tracking Microsoft Dynamics CRM plus SharePoint Portal Delivered by Wipro Reporting Registry Power Auctions solution Delivered by IBM Round Reporting CfD Contracts Eligibility Documentation CMU Obligations

Security Policies Data Centres Personnel Channels Intrusion Protection
Solutions are designed to comply with National Grid Security Standards and Codes of Practice which are all Government and CPNI approved Data Centres All data centres used are ISO 27001/2 standards and SSAE16 Type II certified Personnel All National Grid, Wipro and IBM personnel are bound by our security standards and associated background checking Channels All National Grid/Participant/Delivery Partner exchanges will be via https secure Internet channels or secure Intra-Data Centre communications are via secure VPN Intrusion Protection Anti Virus and Malware protection on all servers, Network Security Zones, Edge Network Security, Deep Packet Inspection, Core Firewall Multi Layer Switches Authentication User name, password and PIN number required, Maintained via segregated ADFS PIN authentication through SMS Password 8 digits, at least 1 upper case, 1 lower case and 1 number or special character, changed every 90 days

System Requirements The minimum system requirements for Participant system access Description Portal Downloads No executable downloaded code or cookies Supported Browsers IE 11, 10, 9, 8 Google Chrome (latest version) Mozilla Firefox (latest version plus immediate previous version) Apple Safari (latest released version) Operating Systems Microsoft Win7/8 Internet Connection Full Internet connection Back-up internet connection recommended Microsoft Office Microsoft Office 2010 or higher recommended * XP is not recommended for security reasons but we will check that screens display correctly in XP. However, if you do choose to use XP, at your own risk, please use Chrome (not IE8) in order to have TLS 1.1

Support Process I S e r v i c P o d H l p D s k B C M / f T a m t n 3
: Admin & Auction Systems I S e r v i c P o d H l p D s k B C M / f T a m t n 3 Issue Query Call Delivery Body Help Desk Resolve Business Business or Technical Issue ? Log Call Pass Call to Service Provider Receive Create Update Log Resolve Issue Inform DB and Update Heldesk Update User and Update Call Log Confirm Resolution Start Technical Yes and Close Call End Call log Closed Contact IS Help Desk Log Call Details Business Issue Not Resolved Inform Provider Issue Not

Service Characteristics
Description Portal System Available for use 24*7 System Supported Period 8am – 6 pm Contact Us Telephone Support System Availability (in supported period) 99.9% Recovery Time 4 Hours “Hot” Disaster Recovery Yes (Refresh)

Testing Our system will undergo extensive testing to include;
System Testing All development will be tested before being submitted for UAT User Acceptance Testing Full role base testing will undertaken prior to deployment and go-live Performance Testing System performance will be tested through use of load simulation tools Regression/Integration Testing All code will be tested to ensure integration and end-to-end function Penetration Testing Full penetration testing will be undertaken by our accredited testing agent, Portcullis

Training System Specific Training will be offered close to launch of the system Training is not mandatory but encouraged Registration and Qualification: User manuals Training will be modular Webinar style hosted events Webinar recordings available on-line A dedicated EMR Helpline will be available to contact the Delivery Body

Coffee Break

High Level Architecture Reminder
External Parties Energy Industry & Trade Associations Existing Generators Prospective Generators DSR Aggregators Northern Ireland Parties (SONI) Ofgem DECC Counterparty & Settlement Agent Comms Channels Web Secure User Authentication Public Portal Participants (market) Private Authentication Service Alerts & Notifications FAQ & Guidance Administration System CRM CfD Admin CM Admin Auction Service Eligibility Pre-Qualification Companies & Users Auction System Allocation Comms & Queries Appeal Mgmt Obligation Tracking Microsoft Dynamics CRM plus SharePoint Portal Delivered by Wipro Reporting Registry Power Auctions solution Delivered by IBM Round Reporting CfD Contracts Eligibility Documentation CMU Obligations

Portal – Look & Feel Contracts for Difference

Registering for CfD Qualification
Ensures individual acting on behalf of an organisation is known, and authorised to do so High Level Principles All CfD Qualification Applications will be made through the National Grid “EMR Portal” All Companies that wish to participate for Contracts for Difference will need to register within this system Initial company registration through which company details will be cross-checked by National Grid Thereafter other “company users” of the Portal may be added by the main company administrator user(s)

Registering Options Companies will have three options for initial registration If you are already registered for the Capacity Mechanism AND you want the same Main Admin for CM and CfD Your existing registration can be extended to cover CfD Once the system is live you can register via the system The process will take two days to enable validation checks You can register off-line in advance of system go-live via the bulk upload process You will be able to use the system from go-live day

Registering Data Requirements

Registration Form – Via the System

User & Sub-company Registration
The Company Administrator for each company will be set up by National Grid on receipt of an authorised request. Including password/PIN re-sets The Company (or Sub-Company) Administrator will typically be a manager within the participant EMR organisation The Company Administrator (or Sub Company Admin) can then assign and manage other users within the company User Password/PIN resets are managed by the Company Administrator Company Administrator CFD Users CM Users Sub Company Administrator Company XYZ

Bulk Upload We will provide a bulk upload facility to enable early preparation of Registration and Application data Based upon offline .csv files exchanged via . National Grid will upload data for validation by participants We will provide templates for; Company and Main Administrator Registration User and Sub-company Registration & Privileges Qualification Data CMU Data We would like all participants to use Template 1 (above) for Company and Main Administrator Registration We expect that use of templates 2 – 4 (above) will only be of value for those with multiple applications/CMUs Documents and files to be submitted must be uploaded manually

To be a qualifying applicant
CfD Qualification To be a qualifying applicant Meet Eligibility Requirements (General, additional & supplemental) Provision of other information/data Not be an Excluded Applicant

CfD Qualification – Eligibility Requirements
Connection Agreement(s) / Countersigned Offer(s) Supplemental Requirements for phased Offshore projects Supply Chain Plan >=300MW Planning Permission(s)

CfD Qualification – Connection Agreements
Agreement(s) for connection with TSO and/or /DNO for >=75% of capacity Direct Connection Agreement(s) between Private Wire Generator and Private Wire Network Operator Agreement(s) between Private Wire Network Operator and TSO/DNO Partial Confirmation that no connection agreement applies or is to apply Islanded CFD Unit

CfD Qualification – Planning Permissions
Section 36 Crown Estate Agreement for Lease / Lease (Offshore only) Marine Licence Marine Licence Planning Permission Development Order / Transport and Works Act Order Permissions must relate to CfD Unit and getting the power to the transmission or distribution or private wire network No requirement to provide permissions for the TO/DNO works

CfD Qualification - Exclusions
CCS and Nuclear AD, Hydro, Onshore Wind, Solar =< 5MW Non GB Not to be in receipt of another subsidy (RO, CFD, CM, NFFO, RHI if EfW with CHP) except: RO accredited registering additional capacity >=5MW RO accredited registering subsequent offshore phases Biomass co-firing stations can convert from RO to CFD

CfD Qualification – Other Information/Data
Valid Incorporation Evidence of incorporation – e.g. Company Registration and VAT/Tax Registration Additional Information (inc.) Name and address Project name and location Capacity (MW) Target Commissioning Date and start of Target Commissioning Window For LCCCo to complete CfD contract Contract terms Version number of standard or modified terms

CfD Qualification – Application process
1. Application via system 2. User Registration 3. Upload documents 4. Application submitted 5. System closure

CfD Qualification – Eligibility process
1. Application Closing Date 2. 10 working days to determine if qualifying application 3. Assess application 4. Verification checks 5. Take into account any contradictory evidence 6. Issue determination to Applicant 7. Notify Applicant via system

Applicant Data & Evidence requirements – Planning Permission(s)
Planning Permission(s) (including Crown Estate Lease) Full documented evidence of planning permission(s) Evidence must clearly state location, MW, dates and technology (where not stated, indicate why) Planning permission(s) for CfD Unit and works to allow electricity to be supplied to network (unless being undertaken by someone other than applicant)

Applicant Data & Evidence requirements – Connection Agreement(s)
Connection Agreement(s) / Countersigned Offer(s) Declaration of connection type Full documented evidence of connection agreement(s)/countersigned offer(s) Evidence must clearly state location, MW, dates and technology (where not stated, indicate why) If “islanded” or “partial”, frequency of provision of metered data volumes If “islanded”, declaration that no connection agreement is or is to apply

Applicant Data & Evidence requirements
Full copy of approval certificate Evidence must clearly state location, MW, dates and technology Supply Chain Plan >=300MW System Validation Supplemental Requirements for phased Offshore Projects Full copy of certificate of incorporation and VAT Registration certificate (or equivalent if non UK) Incorporation

Applicant Data and Evidence requirements - Exclusions
Certify that not an Excluded Application Certify that not in CM, NFFO or CfD DB cross check against public registers Either certify that not in RO, or if certify that in RO confirm which type of dual scheme plant applies DB/Ofgem cross checking process 53 53

Other Applicant Data & Evidence
Information required for LCCC to complete CfD contract Name and contact details of Applicant/Agent/Person entering into CfD Contract Project specific details e.g. MW, location Certify that information provided in Application is true and correct

CfD Qualification – Reviews
Applicant Submit Review Notice via system within 5 working days Cover only those areas subject to non qualification determination No new evidence but can clarify original evidence DB 10 working days from date of review notice to reply to Applicant Notify Qualifying Applicants that in receipt of review notices Outcome Non qualification review notice which overturns or upholds original decision and provides reasons for the determination Applicant to log into system and view DB decision

CfD Qualification – Reviews
Review Requirements Concise statement identifying dispute No new documentary evidence but can clarify original evidence Schedule listing the documents submitted Succinct presentation of arguments Summary of grounds for dispute

CfD Qualification – Appeals
Applicant Submit Appeal and Review documents to Ofgem directly 5 working days to submit an appeal to Ofgem Ofgem 30 working days to respond Allocation may proceed if overrunning DB Appeal Statement to Ofgem Notify qualifying applicants that there are appeals in progress Update Appeals Register once CfD Notifications have been issued Outcome Can overturn or uphold original decision and provide reasons for the determination Ofgem advise Applicant and DB stating determination and date of determination

CfD Qualification – High Court
Applicant 28 days to appeal to High Court High Court High Court could ask Authority to reconsider their decision or direct DB to reinstate as a Qualifying Applicant

Lunch

CfD Budget Levy Control Framework caps for Low Carbon Support
LCF Budget includes Renewables Obligation (RO), Small Scale Feed in Tariff, FIDeR & generic CfD. Initial budget to be published July 2014, final budget anticipated late September 2014.

CfD Allocation – Round 1 Pot 1 - Established Technologies
Onshore Wind (>5 MW) Solar Photovoltaic (>5 MW) Energy from Waste with CHP Hydro (>5MW and <50 MW) Landfill Gas Sewage Gas Pot 2 - Less Established Technologies Offshore Wind Wave Tidal Stream Advanced Conversion Technologies Anaerobic Digestion Dedicated biomass with CHP Geothermal Potential Pot 3 - Established Technologies Biomass Conversions 100MW Minimum across the RO & CfD Scottish island onshore wind projects Potential Pot 4

Valuation Formula X X X Top-Up Payment General conversion factors
Strike Price minus Reference Price Top-Up Payment e.g. Transmission losses, hours to days. Set out in Allocation Framework General conversion factors e.g. Load factors Technology Specific Factors Provided by Applicant Capacity X X X

by Pot, total value / minima / maxima in each year
CfD Valuation Budget Valuation Formula Pots Budget Assessment; by Pot, total value / minima / maxima in each year DB Notification to SoS (DECC) Allocation SoS (DECC) increase budget?

CfD Allocation – Process Overview
Step 1 Check if Auction is required. If yes, applicants notified to submit Sealed bids Step 2 Run Unconstrained/Constrained allocation Step 3 Independent Audit of DB Calculations Step 4 SoS reviews; Proceed, Re-run or Cancel Allocation Process. Step 5 DB CfD Notifications : (LCCC & Applicants)

CfD – Decisions to run Auction
NO Auction MAX (only) Auction MIN Auction General Pot Auction If… No Pot Breach And… No Breach of Techs subject to MAX (MW) Techs Subject to MIN can breach (MW) If… No Pot Breach And… Techs exceed MAX limit (MW) Techs Subject to MIN can breach (MW) All Unallocated MAX Rejected If… General Pot Breach And… Techs Subject to MIN breach (MW) Unallocated MINs move to General Pot Auction If… General Pot Breach Unallocated MINS considered MAX constraints apply

Valuation of Qualifying Applications [per POT]
Constrained Allocation Unconstrained Allocation General Auction MAX only Auction MIN Auction POT Auction

CfD Allocation – General Principles
  Increasing strike price bid 15/16 17/18 16/17 18/19 Budget Rule Pot /Budget (Cannot Be Exceeded Except for Pending Projects) Constraint Only competitive where binding constraint (E.g. Pot/MIN/MAX) Across Years All projects in same Pot will compete on strike price basis, regardless of delivery year Bid Prices Projects will be awarded in order of lowest to highest strike price Pay as Cleared Clearing Price set by most expensive successful project in each year (subject to cap at the Technology Admin Strike price). 15/16 16/17 17/18 18/19

CfD Allocation – Sealed Bids
Bidders submit the lowest strike price they are willing to accept. General 5 Days sealed bid submission window No bids above the Admin Strike Price Withdraw & re-submit bids during submission window No bids accepted after window closes System will default Admin Strike price if none is submitted Flexible Bids Submit combination of different bid price, capacity, TCW,& TCD Max 10 Bids per project Must be same Delivery year or later than original application Must be same capacity or less than original application

CfD – Competitive Allocation Principles
Used to identify Successful applicants and Strike Prices Sealed bid process (includes bidder flexibility) Each delivery year has a separate clearing price Triggered by breach of Budget or Maxima Minimum allocated first Allocation in ascending price order (across years) Years can close independently

CfD Allocation – Auction (MINIMA)
Project SP Bid Admin SP Del Yr MW Group K 123 130 17/18 150 GEN J 120 140 45 MIN I 119 50 MAX H 118 15/16 30 G 125 16/17 40 F 117 18/19 200 E 116 500 D 115 C 102 110 B 93 100 70 A 85 90 65 MIN Capacity set at 100 MW MIN Requires Auction since (D + H + J) MW is > 100MW, and General Auction is triggered    The valuation of ‘D’ & ‘H’ is compared against pot value to ensure both can be allocated  Increasing bid price ‘D’ & ‘H’ Provisionally allocated with a Cleared price of 118 in 15/16   ‘J’ Cannot be accepted in MIN auction and is to be considered in general auction MIN = 100 MW Maximum Value of MINIMA 15/16 16/17 17/18 18/19 115 118 This project sets clearing price

CfD Allocation – Auction (General)
MAX Capacity = 600 MW Project SP Bid Admin SP Del Yr MW Group K 123 130 16/17 150 GEN J 120 125 15/16 45 MIN I 119 17/18 100 MAX G 118 40 F 117 200 E 116 500 C 102 30 B 93 18/19 A 85 95 70 MAX Exceeded 630 > 600 Budget    Close Auction to all MAX  B CP = 93  Increasing bid price  I  C Reject all other projects for 15/16 CP =102  K CP = 123  G CP = 123 E  Close Year CP = 120 Stack Bids in order of increasing SP Start Allocating to Bid of lowest Strike Price All Successful projects delivering in same year gets the same cleared price except MINs - (Subject to Admin Strike Price per Tech) MAX limits apply F CP = 117 A CP =95 MIN = 100 MW Maximum Value of MINIMA 15/16 16/17 17/18 18/19 MINS ** CP = Cleared Price

CfD –Allocation Other Detailed Points
Bidder Flexibility Tiebreakers Pending Bids

CfD Allocation – Flexible Bids
Project SP Bid Del Yr MW A2 115 16/17 60 C2 112 17/18 45 E2 108 18/19 70 A1 105 75 C1 100 D2 97 D1 94 80 H1 93 35 B2 92 50 F1 90 E1 88 63 B1 85 15/16 Close Year A2 C2 E2 Reject all other bids for 16/17 A1 Next cheapest bid is for same project Close Year C1 Flexible Bids- Increasing Price Next cheapest bid is not for same project D2  Strike Price Bids D1 Budget would be exceeded in 16/17 Budget would be exceeded in 17/18 H1  B2 F1  Bids are assessed in order of strike price bid (cheapest first) . If they fit the budget profile (and don’t exceed MAX) they are accepted. Same Commissioning Year Flexibility If a bid is successful, remove from stack all other bids relating to same project E1  B1 No budget or MAX breach, accept and remove other ‘B’ bids from stack  15/16 16/17 17/18 18/19

CfD Allocations – Tiebreaker Rules
Tie-breaker rules applies where 2 or more projects with the same strike price bid, both cannot be awarded a CfD without exceeding budget limits Confirm projects with same S.P would exceed budget Assess all combination of tied projects which exceeds budget Choose combination of projects which best uses budget For further ties – Random number generator is to be used Consider other flex bids for unsuccessful projects Remove other flex bids for successful projects

CfD Allocation to Pending Applicants
Pending Applicants will be required to submit bids during the Bid Submission Window (If Tech is subject to an Auction) Pending Bids will only be opened (used) by the DB if the Authority concludes the applicant is a Qualifying Applicant If following CfD Notifications the Pending Applicant becomes a Qualified Applicant, and If No Auction - the Administrative Strike Price would be applicable to the Pending Application If Auction – The Pending Applicants lowest bid had to be equal to or lower than the clearing price for the Auction (Relevant Pot & Year); in order to be awarded a CfD.

CfD Allocations Audit & SoS Actions
DB will appoint Independent Auditors (IA) What the Independent Auditor Will Do Unconstrained Round (for each Pot) Verify if the decision not to Auction is correct Constrained Allocation, (for each Pot) Verify if the decision to go Auction is correct Verify if Sealed Bids (Flexible Bids) were used appropriately Verify if the Auctions rules were used appropriately to decide result of the Auction SoS Actions SoS review Audit Report and DB Recommendations SoS may choose to: Proceed to Allocation Notifications Re-run Part/All of the Allocation Process Terminate & Cancel the Allocation Round

CfD Allocations Notifications
Following successful Allocation process, DB will notify Unsuccessful Applicants CfD Counterparty of all Successful Allocation To Include all relevant applicant details submitted at application Strike Price, Delivery Dates, Capacity relevant to CfD award Successful Applicants of their CfD Award Following Allocation Notifications, DB will Publish Allocation Round Report Publish CfD Appeals Register (If Applicable)

Coffee Break

Implementation Next Steps

Implementation Coordination Calendar
Eligibility and Allocation 21 July 2014 Application and System Readiness Aug 2014 Applicant and System Readiness Sept 2014 System webinar Sep/Oct 2014 Implementation progress Oct 2014

Go-Live Process – Applicant Support
User Registration Companies register and create Users. System available late Sept/early Oct Guidance Pragmatic Guide to Qualification and Allocation (1 Sept) FAQs (1 Sept) Round Guidance Draft 1 Sept Final 30 Sept Training Screen cast late Sept IS Manuals

Industry Readiness What else do you want / need from DB to be ready for October? CfD Manager EMR Stakeholder Manager

Industry Participants CfD Success Factors
Category Measures of success Systems Systems to be available in a timely manner and have ability to allow multi-logon access. The system should be user friendly and be easy to use for all participants with good guidance notes and documentation. Navigation in the system should be easy to follow. Terminology should be consistent between that used in the system and policy documentation. Have a dedicated central helpdesk for applicant queries and technical support. The systems and process should minimise the risk of disputes and the DECC should not radically change the rules and timelines. Ensure that the system is reliable and any pinch points are resolved beforehand to avoid unavailability during critical periods.

Industry Participants CfD Success Factors
Category Measures of success Process Have an effective way of providing feedback to industry participants for key updates related to CfD applications. Useful to have worked examples which step through the process of application of a CfD. Guidance documentation on pre-conditions and requirements on what a CfD applicant needs to provide for qualification to be made available so that there is no room for un-necessary errors leading to disqualification. One common channel of communication between the various parties to issue information / updates to industry participants. Transparency provided on notices and relevant publications (e.g. budget notice).

Key documents EMR Statutory Instruments
The Contracts for Difference (Allocation) Regulations The Contracts for Difference (Definition of Eligible Generator) Regulations The Contracts for Difference (Standard Terms) Regulations The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014: The Electricity Market Reform (General) Regulations 2014 The Electricity Capacity Regulations 2014:

Key documents Associated Supporting Documentation
Implementing EMR This publication provides stakeholders with a comprehensive overview of EMR policy at a point where the implementing secondary legislation is laid before Parliament. New electricity interconnection to GB – operation and revenues: This independent report shows potentially significant revenues are available on the basis of price arbitrage, offering confidence to investors. Analysis of CfD Supplier Obligation funding options – Redpoint Energy: This report provides an assessment of CfD payment volatility and reserve fund size to support analysis on Supplier Obligation design and estimated costs and benefits as detailed in the Supplier Obligation Impact Assessment.

Updated draft Allocation Framework: This sets out the allocation process including the auction rules and the valuation formula that will be used in the allocation process. A final version of the Allocation Framework will be published in advance of the first allocation round opening for application. Available at: Updated High Level Summary of the Allocation Process This summarises how the Allocation Regulation and Allocation Framework work together to establish the allocation regime. Available at: The Government response to the October 2013 EMR Consultation on proposals for implementation:

The Government Response to the January Code and License consultation: The Government Response to the April Balancing and Settlement Code modifications consultation: The Government Response to the March Low Carbon Contracts Company and Electricity Settlements Company operational costs consultation: The Government Response to the March Consultation on directions to offer Contracts for Difference:

Contracts For Difference

Similar presentations

Presentation on theme: "Contracts For Difference"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Contracts For Difference

Similar presentations

Presentation on theme: "Contracts For Difference"— Presentation transcript:

Similar presentations

About project

Feedback