EDF Energy - Finance

The Energy Market Reform and Impact
on the Renewable Obligations
• The Government plan to replace the RO with a Contract For Difference
(CFD) which will be providing a fixed all in price of renewable electricity
• The CFD will be funded through a supplier levy managed
by a government agency
• The existing RO projects will continue under a closed scheme,
until the 20 years are up and the RO will remain open to new projects
from 2013 to Q1 2017
• Issues that will need to be considered are:
• whether renewable projects being built before 2017 should have the choice
of taking the CFD or the RO during 2013 to 2017 or be RO only
• ROC price setting mechanism after 2017
• Whether projects will be able to exit the RO and move to the CFD
• At what point will CFD prices be made available
• The process for entering into a CFD and the validity / termination provisions
for the CFD