The Government’s much vaunted ‘contracts for difference’ (CfD) auction system for funding renewable energy has been thrown into disrepute after a key project awarded a contract has had its contract cancelled by a government agency. This is because of a delay in a court appeal against the Government’s own planning consent for the project. There is no procedure for allowing more time for the project or for awarding a contract to one or more runners up in the auction contest. The RSPB lodged a judicial review case which began hearings almost a year ago against planning consent given to four Scottish offshore windfarms on the grounds that they damaged bird species. Meanwhile the Government which had awarded a CfD contract in early 2015 to one of them, to Mainstream power for the 448 MW Neart na Gaoithe project near the Forth Estuary, has allowed the contract to be cancelled by the Low Carbon Company (a government agency). This is on the grounds that the project has failed to meet its milestones to ensure the project begins operation in 2018. Mainstream says that the only thing holding it up before its contract was cancelled was the court procedure.
Dave Toke’s Blog 12th May 2016 read more »