Second CfD round heads down slow track

National Grid has revealed it has opened the qualification appeal window for the second contracts for difference round following the conclusion of a review procedure.

The announcement indicates there is still at least one non-qualifying project at this stage and rules out the possibility of the auction process heading down several fast tracks within the timetable.

Non-qualifying projects will have from today (7 June) until 13 June to lodge an appeal with Ofgem. If any do, the regulator will then have the following 36 days to make an assessment and come to a decision.  

Under the fastest of the five different paths in the timetable, which would have been taken if all projects had qualified at the first opportunity, sealed bids were due to be submitted from 5 May, with the auction itself beginning on 2 June.

The start date for the auction is now known to have been set back to 23 June at the earliest. It will not get underway until 14 August if any appeals are submitted to Ofgem.

National Grid, the delivery body for the contracts for difference mechanism, will provide a further update on the projected timetable on 14 June.

The second CfD round is open to immature ‘Pot 2’ technologies including offshore wind, anaerobic digestion, wave and geothermal, and will allocate up to £290 million of annual subsidies. 

Gareth Evans, chief executive of consultancy firm Cornwall, has previously told Utility Week he expects the auction to be “very competitive”, with the clearing price coming in well below the £92.50/MWh strike price offered to Hinkley Point C (2012 prices).