August 15 (Renewables Now) - Banks Renewables, part of property and energy business The Banks Group, has lodged a judicial review application challenging the UK government’s decision to leave onshore wind out of the third Contracts for Difference (CfD) auction round.
The company said in a statement on Thursday that the exclusion of fully-consented onshore wind farms from the CfD allocation process “is against the public interest, prevents consumers from benefiting from the lower energy prices that would result from their inclusion and, from a legal perspective, does not comply with either EU or UK law.”
National Grid's EMR Delivery Body published on Wednesday an updated timeline for the CfD round, including an extension of the sealed bid window to August 29 because of a legal dispute, details on which were not officially available up to now. That window was previously scheduled to close today.
“This legal challenge is very much a last resort and we hope it will be resolved as quickly as possible, but we firmly believe that changes are required to ensure the UK Government complies with its legal obligations and to end the needless prejudice within the CfD process against the most cost-effective and popular form of renewable energy generation,” said Richard Dunkley, managing director at Banks Renewables. The company has two Scottish wind projects, with a combined capacity of 150 MW and permits in place, which were not allowed to compete in the CfD Round 3.
Banks said many governmental and industry organisations share its views, including the Committee on Climate Change, the Scottish Government, Renewable UK and Scottish Renewables, among others.
The third CfD allocation round is open to less-established technologies such as offshore wind, geothermal power, remote island wind, and marine power, among others. It is expected to contract 6 GW of renewable energy capacity to be delivered in 2023-2024 and 2024-2025.