Dec 19, 2013 - The UK government today unveiled the names of 10 bioenergy and on- and offshore wind projects that are “provisionally affordable” under the Final Investment Decision Enabling for Renewables (FIDER) plan.
Total of 16 projects met the minimum threshold evaluation criteria in the second phase of the FIDER process and have received draft investment contracts. Of these only 10 made it to the list of provisionally affordable projects. The final affordability assessment for all 16 proposals will take place in the spring of 2014 at the earliest, the Department of Energy & Climate Change (DECC) said.
The list includes four offshore wind projects: Danish state-owned utility Dong Energy A/S’ three proposals for the 250-MW Burbo Bank, 1,200-MW Hornsea and the up to 750-MW Walney Extension project, as well as the 400-MW Dudgeon offshore wind scheme owned by Norwegian oil and gas company Statoil ASA (OSL:STL) and renewable energy group Statkraft AS. There are also two onshore wind projects -- the 140-MW Beinn Mhor wind farm by UK energy group International Power (LON:IPR) and the 66-MW Heckington Fen project by UK green energy provider Ecotricity. Last but not least, three biomass conversion projects and one dedicated biomass with combined heat and power (CHP) were named “provisionally affordable”. Two of these have been proposed by UK power producer Drax Group (LON:DRX) which is working to convert to biomass three of the six 600-MW coal-fired power generators at the Drax power station at Derby. Lynemouth is also to convert to biomass the Lynemouth Power Station. MGT Power’s 295-MW Teesside Renewable Energy plant is the dedicated biomass with CHP winner.
The 16 applicants that got draft investment contracts have to submit a binding application in March, DECC noted.
Via the FIDER the DECC is working with project developers to avoid “hiatus” in low-carbon power generation investments during Britain’s Electricity Market Reform (EMR). Recently the government unveiled the strike prices, or the power purchase rates, under the new contracts for difference (CFDs) scheme that is to replace the renewable obligation for all new projects from April 2017.
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