Contracts for Difference: standard terms and conditions, February 2017 update
A number of changes have been made to the CfD Standard Terms and Conditions, Generic Contract and front-end Agreements since the first CfD allocation round.
Documents
Details
These updated draft terms and contract documents show the changes made to the contract following the public consultation in May and June 2016. They also incorporate the changes in the draft contract documents published in December 2015, which reflect the outcome of the government response published in June 2015.
We are publishing the revised draft CFD Standard Terms and Conditions, the CFD Generic Agreement and the various front-end agreements to give generators early visibility of the contract that they will be signing if successful in the second CFD allocation round. Changes are shown in tracked text to aid understanding. We expect to publish the final versions of the contract agreements on 6 March in accordance with the CFD implementation plan.
CfD Agreement
Generators who are allocated a CfD will also sign a CfD Agreement, which will then incorporate the CfD Standard Terms and Conditions. The CfD Agreement is a bespoke document including all of the Project-specific information, including the estimated installed capacity, the applicable Strike Price and the particulars of the generator to which the Agreement applies.
CfD Agreements for Phased Generators
Phased Agreements allow for Offshore Wind projects with a total capacity less than 1,500MW the ability to commission in up to three distinct phases, allowing gradual deployment of the total project capacity to align with the prevailing conditions of the project. The Phased Agreements accommodate developers wishing to deploy a single or apportioned metering approach.
CfD Agreement for Private Network Generators
Certain projects do not easily match the metering requirements of the Standard Terms, in particular those that are license-exempt and who trade upon a private network. These terms introduce equivalents to the metering and other compliance standards that such generators are not bound by, maintaining parity with the obligations faced by other CfD holders.