Out-Law Analysis 7 min. read
18 May 2016, 2:46 pm
This means that, since 13 May 2016, any new or existing onshore wind generating stations have been unable to apply for accreditation or add additional capacity under the RO, unless that capacity is eligible under one of five available grace periods.
In Northern Ireland, the enactment of the 2016 Renewables Obligation Closure Order (Northern Ireland) on 16 March 2016 confirmed the closure of the Northern Ireland Renewables Obligation (NIRO) to new large-scale onshore wind from 1 April 2016. 'Large scale' refers to new installed capacity of 5MW or above.
Here, we summarise the grace periods and applicable criteria, as set out in the legislation.
Approved Development condition
Projects that meet the 'approved development' condition have until 31 March 2017 to accredit under the RO.
To meet this condition, projects must be able to demonstrate that they had planning permission, a grid connection agreement and the necessary land rights in place on or before 18 June 2015.
For new onshore wind, evidence must be provided to the relevant authority along with the application for accreditation of the station. For additional capacity, documents must be provided to the relevant authority on or before the date on which the authority made its decision that additional capacity could form part of an onshore wind generation station.
Planning permission
For the purposes of the legislation, 'planning permission' may include:
Grid connection agreement
For the purposes of the legislation, 'grid connection' can include:
Land rights
Evidence of land rights should take the form of a declaration, signed by the operator following the template provided in Ofgem's final guidance. This declaration should state that, as of 18 June 2015, a relevant developer or person connected with the relevant developer of the station or additional capacity:
Grid or Radar Delay condition
Projects that meet the 'grid or radar delay' condition have until 12 May 2017 to accredit under the RO, subject to two further grace periods.
Generating stations that have been subject to grid connection or radar works delays that were not due to a breach by a developer must be able to provide evidence of a grid works agreement, expected completion date before the start of the relevant grace period and confirmation of the delay from the relevant network operator.
For new onshore wind, evidence must be submitted to and received by the relevant authority by the station operator, on or before the date on which the authority made its decision to accredit the station. For additional capacity, evidence must by submitted to and received by the relevant authority on or before the date on which the authority made its decision that the additional capacity could form part of an onshore wind generation station.
For the purposes of a grid and radar delay to which no additional grace periods apply, the expected completion date for the project must be on or before 12 May 2016.
Grid delay evidence
As evidence of a grid connection delay, the station operator must be able to supply:
Radar delay evidence
As evidence of radar works delay, the station operator must be able to supply:
Approved Development and Investment Freezing condition
Generating stations where previously agreed finance was suspended as a result of the legislative uncertainty before the 2016 Energy Act became law have until 31 January 2018 to accredit under the RO, provided that they also meet the approved development condition as set out above.
For new onshore wind, evidence must be provided to the relevant authority with the application for accreditation of the station. For additional capacity, evidence must be provided to the relevant authority on or before the date on which the authority made its decision that additional capacity could form part of an onshore wind generating station. In both cases, the letter from a recognised lender must be dated no later than 9 June 2016.
Along with the evidence set out under the approved development condition above, the station operator must also be able to supply:
Approved Development and Grid or Radar Delay condition
Projects that meet the approved development condition and subsequently experience an unforeseen grid or radar delay will benefit from a further grace period, giving them until 31 March 2018 to accredit under the RO.
The station operator must be able to supply the same evidence, by the same deadlines, as for the approved development condition; followed by the same evidence as for the grid or radar delay condition. The expected completion date for the works in this scenario must be on or before 31 March 2017.
Approved Development and Investment Freezing and Grid or Radar Delay condition
Projects that meet the approved development condition, but where previously agreed finance was suspended as a result of the legislative uncertainty before the 2016 Energy Act became law, but which subsequently experience an unforeseen grid or radar delay will have until 31 January 2019 to accredit under the RO.
The station operator must be able to supply the same evidence, by the same deadlines, as for the combination of the approved development and investment freezing conditions above. They must then be able to supply the same evidence as for the grid or radar delay condition. The expected completion date for the works in this scenario must be on or before 31 January 2018.
Chris McGarvey and Ian McCarlie are energy and finance experts at Pinsent Masons, the law firm behind Out-Law.com.