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Subsidies have been withdrawn from two low-carbon energy projects after the developers failed to meet a key delivery deadline.
The Grangemouth Renewable Energy Plant and Station Yard schemes were both awarded Contracts for Difference in the most recent auction in September 2017.
Auction winners must demonstrate their commitment to delivery by meeting one of several milestone requirements within 12 months of signing an agreement.
They must either incur at least 10 per cent of the expected development and construction costs, or provide evidence of their commitment, for example, by showing that financing has been secured and that contracts are in place for the purchase of generation equipment and the export of electricity.
The Grangemouth Renewable Energy Plant – an 85MW energy-from-waste project in Scotland – and Station Yard – a 50kW biomass project in Wales – both picked up Contracts for Difference at a strike price of £74.75/MWh (2012 prices).
The Low Carbon Contracts Company (LCCC) said the agreements have been terminated due to a lack of sufficient progress.
The developers of five winning projects from last year’s auction, representing 90 per cent of the total capacity procured, have now met their milestone requirements. The projects include the Triton Knoll, Moray East and Hornsea Project Two offshore windfarms.
LCCC said the developers of three further projects are still working to meet their milestone requirements. There is a grace period of several weeks to allow for a review and for further information to be submitted and validated.
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