UK 'must link energy with national security'
Defence experts call for faster renewables rollout A report commissioned by RenewableUK is urging th...
12
Mar
The UK government has issued a call for evidence seeking industry’s input on ways to boost the corporate power purchase agreement (CPPA) market across Great Britain.
Energy department DESNZ and the Department for Business and Trade have asked for feedback from electricity generators, investors, traders and large-scale consumers in particular about their views on how to better incentivise the route to market.
The aim is to “identify barriers and opportunities for businesses to secure stable, competitively priced electricity through CPPAs, supporting industrial competitiveness and driving growth”, they stated.
Encouraging greater uptake of CPPAs can provide a “market-driven solution” to address high industrial electricity prices in energy intensive sectors that “allows corporates to secure competitively priced electricity to enhance competitiveness while making progress towards net zero without increasing fiscal burden”.
The scope of the review is focused on sleeved and unsleeved off-take agreements, as well as onsite and private wire arrangements.
Industry players have been asked to provide guidance on supporting growth in the CPPA market, examples of best practice approaches used in other countries, and the merits of CPPAs for commercial-scale consumers compared to other route to market options.
The window for submitting responses closes on 6 March.
London notes that while a growing number of data centres across the country are considered “attractive counterparties” for CPPAs due to their large and predictable demand, their growing participation in the space “could influence market dynamics” by crowding out smaller businesses.
CPPAs also face the challenge of competing with the Contracts for Difference scheme, which many developers favour due to its longer-term agreements and creditworthiness.
“There is potentially an inverse correlation between availability of CfDs, and interest in CPPAs,” officials stated.
“Stronger interest is at points where allocation rounds offer limited scope for onshore wind and solar projects, but near-term attention currently focuses on CfD options in view of the high levels of ambition linked to delivering Clean Power 2030 capacity.”
Source: reNews
Loading...