Letter to Ofgem: Draft Special Licence Conditions Call for Input

On April 20, in addition to  our response to Ofgem's  Call for Input on draft special licence conditions, we submitted a letter jointly with the British Hydropower Association (BHA). 

The letter highlighted the following points:

• The provisions for Force Majeure and delay do not reflect the scale and complexity of PSH projects. Extended construction timelines and exposure to high-impact, low-probability risks may deter lenders, investors and developers.
• Although the PSH sector has demonstrated exceptional reliability over many years, Ofgem’s proposed target availability could jeopardise project bankability.
• The regime should ensure that LDES capability is available when needed. We are concerned that the proposed additional services and restrictions will impede the achievement of the regime’s intended benefits.

If you would like to discuss this further, please contact Poppy.