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- Financial Support<\/em><\/strong> for community-led projects during the early phases of development will be made available.<\/li>\n
- A Mandatory Community Benefit Fund and Register<\/em><\/strong> will be standardised across the sector. This is proposed at \u20ac2\/MWh for all RES-E generation produced.<\/li>\n
- Mandatory Investment<\/em><\/strong> opportunities for communities with a focus on a 5km zone around the project.\n
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- This requirement is achieved by offering an opportunity to invest, but not based on uptake.<\/li>\n
- A separate ringfenced category will be included in the 2nd auction (circa 10%) and subject to review for future years.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
2.\u00a0 Auctions<\/span><\/strong> Auctions are proposed on the following schedule;
![\"RESS\"](\"https:\/\/electroroute.com\/content\/uploads\/2018\/07\/RESS.png\")
\u00a0 The capacity auctions will be open to numerous technologies, and while a single auction will take place, intervention levers will influence the outcome;<\/p>\n- \n
- Targeted Delivery Dates:<\/em> <\/strong>Projects must indicate a plan to energise and connect by a target deadline or risk losing their subsidy.<\/li>\n
- Technology Cap:<\/em><\/strong> Some auctions will place an upper limit on technology procurement at which point a more expensive technology will be procured (provided this falls within an agreed percentage of the uniform price).<\/li>\n
- Technology Neutral with Enhanced LCOE:<\/em><\/strong> Whole system costs and external costs will be associated with certain technologies.<\/li>\n
- Supply Demand Ratio:<\/em><\/strong> Price dependant, a demand curve flexibility will be introduced to procure more\/less volume in a given year. Volumes to be procured will be set to ensure competition.<\/li>\n
- Contract Term:<\/em> <\/strong>Contract terms will differ per technology and can differ from one auction to another.<\/li>\n
- Budgetary Caps:<\/em><\/strong> this is intended to drive further competition.<\/li>\n
- Administrative Strike Price per Technology:<\/em><\/strong> This sets a Cost of New Entrant (CONE) for each technology.<\/li>\n
- Community Owned Projects:<\/em> <\/strong>A capacity allocation for a volume of community owned projects (5-15%, beginning after RESS-1) will be set.<\/li>\n<\/ol>\n
The commercial design features the following key details:<\/p>\n
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- Eligibility Rules:<\/strong> <\/em>Each project must have met pre-agreed milestones in terms of development and community engagement to participate.<\/li>\n
- Bid Bonds:<\/strong> <\/em>These are placed before the auction to avoid sceptical bids. If a project fails to build per milestones, they will lose such a bond. – Community led projects are proposed to be exempt.<\/li>\n
- Project Milestones:<\/strong><\/em> In order to retain the contract, the development of the project must meet an agreed timeline.<\/li>\n
- Financial Structure:<\/em> <\/strong>RESS will be a 2- way CfD.<\/li>\n
- Floating Feed in Premiums:<\/strong> <\/em>Payments to generators are a function of output, strike price and the reference price.<\/li>\n
- Uniform Price:<\/strong> <\/em>The auction will be Pay as Clear.<\/li>\n
- Market Reference Price:<\/strong> <\/em>This will be the Day Ahead price.<\/li>\n<\/ol>\n
- Bid Bonds:<\/strong> <\/em>These are placed before the auction to avoid sceptical bids. If a project fails to build per milestones, they will lose such a bond. – Community led projects are proposed to be exempt.<\/li>\n
- Technology Cap:<\/em><\/strong> Some auctions will place an upper limit on technology procurement at which point a more expensive technology will be procured (provided this falls within an agreed percentage of the uniform price).<\/li>\n
- Targeted Delivery Dates:<\/em> <\/strong>Projects must indicate a plan to energise and connect by a target deadline or risk losing their subsidy.<\/li>\n
- A Mandatory Community Benefit Fund and Register<\/em><\/strong> will be standardised across the sector. This is proposed at \u20ac2\/MWh for all RES-E generation produced.<\/li>\n