Biography information for Alan Whitehead – 2014 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Biography information for Alan Whitehead on Energy and Climate Change.

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Michael Fallon

We anticipate that some generators will seek to establish the terms of any PPA and financing arrangements before they participate in the CfD allocation round, in order to understand better their likely costs. Agreements between generators and PPA providers could take a number of different forms, from indicative terms to a signed contract. The decision to sign a conditional PPA ahead of the auction, and the duration of any agreement, are ultimately commercial matters.

We anticipate that the Offtaker of Last Resort (OLR) will encourage competition in the PPA market both at the outset of the CfD and once any initial PPA has expired. Generators agreeing to a conditional PPA would be able to participate in the later short-term PPA market, once their initial PPA had expired; backed by the protections afforded by the OLR.