U.K. Gives Details of Nuclear, Renewable Power ContractsAlex Morales
The U.K. published details of proposed power contracts for nuclear and renewable energy generators in an effort to spur the 110 billion pounds ($170 billion) of investment it’s seeking through 2020.
Draft contract terms were spelled out in a 168-page document posted today on the website of the Department of Energy and Climate Change, while the methodology for how contracts will be awarded are detailed in a 46-page paper. They describe so-called contracts-for-difference that the government will use to guarantee the power price paid to new plants.
The documents will provide some of the clarity sought by U.K. utilities and project developers before they decide to invest in new wind farms and nuclear power stations. While ministers on June 27 published the prices they intend to pay through to 2019 for power from different technologies, utilities and industry lobby groups said then that more information was needed before they could invest.
“No other sector is equal in scale to the British power market, in terms of the opportunity that it offers to investors, and the scale of the infrastructure challenge,” Business and Energy Minister Michael Fallon said in a statement. “The key contract terms have been published in detail to provide the energy sector and investment community with further certainty, so they can get on and invest.”
Companies were invited to send feedback on the draft contract terms, which the government will consider before publishing final terms in December.