Overview

This amendment to the Energy Bill clarifies the circumstances under which onshore wind power generating stations can receive Renewable Obligation Certificates (ROCs) after March 31st, 2016. It establishes specific conditions related to accreditation dates, grid connection delays, and planning permission timelines, aiming to address the impact of delays beyond the control of wind farm developers.

Description

The amendment adds several new clauses (32LD-32LL) to the Electricity Act 1989. These clauses specify conditions under which onshore wind farms can still receive ROCs even if they were not fully operational by March 31st, 2016. These conditions include:

Conditions for Receiving ROCs:

• Accreditation before March 31st, 2016: Wind farms accredited before this date can receive ROCs for their original capacity and any additional capacity added before specific dates (depending on additional criteria).
• Grid or Radar Delays: For wind farms accredited between April 1st, 2016 and March 31st, 2018 (with some exceptions), ROCs can be issued if delays in grid connection or radar works were outside the developer's control and properly documented.
• Approved Development Condition: This requires the submission of specified documentation to the relevant authority before specific deadlines, including evidence of planning permission granted or applied for by June 18th, 2015, grid connection agreements, and land ownership or lease agreements. The Lords amendments sought to broaden this criteria and the Commons rejected these changes.
• Investment Freezing Condition (applicable to certain dates): This condition applies to wind farms facing funding delays due to uncertainty surrounding the Energy Act 2016, requiring proof of funding issues and confirmation from recognised lenders.

The amendment also provides detailed definitions for terms like "accredited," "additional capacity," "commissioned," and "grid works" to ensure clarity and consistent application.

Government Spending

The amendment does not directly specify government spending figures. However, by potentially allowing more onshore wind farms to receive ROCs, it could indirectly increase government support for renewable energy and might affect the overall cost of the Renewables Obligation scheme. The exact financial impact is difficult to quantify without further analysis and will vary depending on the number of wind farms meeting the outlined conditions.

Groups Affected

• Onshore Wind Farm Developers: This amendment could significantly benefit developers of onshore wind farms who experienced delays beyond their control (e.g., grid connection issues, planning permission challenges). It might help prevent financial losses caused by missed ROC deadlines.
• Renewable Energy Sector: The amendment could provide a boost to the onshore wind energy sector by ensuring fair treatment of projects affected by unforeseen circumstances.
• Government: The amendment could affect the UK government's financial commitment to renewable energy subsidies through the ROC scheme, but the direction and magnitude of such impact remains uncertain.
• Electricity Consumers: The potential for an increase in renewable energy production might indirectly impact electricity prices, though the effect is likely to be small and dependent on numerous other market factors.
• Grid Operators and Radar Authorities: The amendment places responsibilities on these organisations to provide documentation supporting claims of delays caused by their actions.

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