Parliamentary.ai

Overview

This amendment to the Energy Bill clarifies the circumstances under which Renewable Obligation Certificates (ROCs) can be issued for electricity generated by onshore wind farms after March 31st, 2016. It aims to address delays in projects due to grid connection or planning issues, ensuring that projects already in progress or facing justifiable delays aren't unfairly disadvantaged.

Description

The amendment modifies the Electricity Act 1989 to specify conditions under which onshore wind farms can still receive ROCs even if they were not fully operational before March 31st, 2016. These conditions relate to the timing of accreditation, planning permissions, grid connection agreements, and delays caused by factors outside the control of the wind farm developers. Specifically, it introduces several new sections (32LD-32LI) to the Act, detailing different scenarios based on accreditation dates and the fulfillment of "approved development," "investment freezing," and "grid or radar delay" conditions. These conditions generally involve demonstrating that delays were due to grid connection issues, planning permission processes, or investment uncertainties linked to the enactment of the Energy Act 2016, and that the project met specific criteria before June 18th, 2015. The amendment also precisely defines key terms like "accredited," "additional capacity," "commissioned," and the various conditions, to eliminate ambiguities.

Government Spending

The amendment's impact on government spending is indirect. By allowing ROCs to be issued for onshore wind projects that might otherwise miss the deadline, it may lead to increased government expenditure associated with the ROC scheme, although precise figures aren't provided in the amendment itself. The total cost depends on the number of wind farms meeting the newly defined criteria.

Groups Affected

• Onshore wind farm developers: Positively impacted if they meet the specified conditions, as they can still receive ROCs and secure funding for delayed projects.
• Electricity grid operators: May face increased demands for grid connection works, but also potentially less liability for delays.
• Planning authorities: Their decisions on planning permissions and processes become crucial for determining eligibility for ROCs.
• UK Government: May face increased financial commitments through the ROC scheme due to extended eligibility.
• Taxpayers: Indirectly affected due to the potential increase in government spending related to ROC payments.