Question

To ask Her Majesty's Government what evidence they have that "PPAs [Power Purchase Agreements] could be signed on a conditional basis before a strike price needs to be submitted, allowing independent generators to receive indicative financing terms from lenders", as stated in paragraph 25, page 12, of their response on competitive allocation.

The Government's response to the consultation on competitive allocation set out its expectation that the Power Purchase Agreement (PPA) market will evolve such that PPAs could be signed on a conditional basis. We have discussed this with stakeholders and have identified no significant barriers that prevent conditional Power Purchase Agreements being agreed prior to the allocation of Contracts for Difference. Furthermore, some PPA participants have since confirmed that they are prepared to consider approaches from generators on this basis. Ultimately, any decision to offer a Power Purchase Agreement will be a commercial decision for both parties.