col 970).” – 2014 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by col 970).” on Energy and Climate Change.

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Baroness Verma

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. Such conditional PPAs could take a number of forms, from indicative terms to a signed contract.

In 2013, DECC officials established an industry Market Readiness group to prepare the market for offering CfD PPAs. There are now a number of PPA providers discussing terms with potential developers but these discussions are commercially sensitive.

The Offtaker of Last Resort will allow generators to develop their projects using shorter-term PPAs with smaller suppliers. We are on track to introduce enabling regulations to have the OLR mechanism in place ahead of the first CfD allocation in Autumn 2014.