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Renewable power purchaser SmartestEnergy said on Wednesday it will offer customers a new way to sell renewable energy which complements the UK government’s Contracts for Difference regime by aligning the price paid on the wholesale market across the two.
The new offering comes ahead of the first CfD allocation round, which will be open from 14th to 27th October 2014.
The new CfD PPAs will offer generators a PPA market price based on the UK’s daily auction price which is set by the N2EX and APX exchanges. This is the same price that is to be used in a CfD for intermittent renewables as a reference price which is then topped up to the level of the strike price which varies depending on the technology.
SmartestEnergy said the offering should help generators “make the most of the new CfD regime” and added that there are plans to add further “enhancements” to streamline the administration of the generator’s CfD difference payments, managing cash flows, validating readings and reconciling payments.
SmartestEnergy currently offers PPAs to more than 30 per cent of the UK’s independent renewable generators which typically seek PPAs when they are developing projects so they have a guarantee that the power they produce will find a market.
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