England

England

Centrica awaits CfD consultation on Race Bank

UK: UK utility Centrica has said it wants to wait for the consultation into the UK government's Contract for Difference offshore strike prices, before making a decision on the 580MW Race Bank project.

No decision yet on Race Bank
No decision yet on Race Bank

The up to 580MW project is planned for a site in the Greater Wash, off the Lincolnshire coast. While reporting its 1H results, the company also said it retained the option to build the 4.3GW Celtic Array Round 3 project in the Irish Sea as part of its partnership with Dong Energy.

Centrica's decision to wait and see will be a disappointment to the UK Department of Energy and Climate Change (Decc), which announced the prices as part of an effort to remove uncertainty for investors.

At the time, UK energy minister Ed Davey said: "Developers have been crying out for more details, sooner, and that is what we are giving them today."

The UK government announced the "strike prices" for onshore and offshore wind generation up until 2019. The prices are largely in line with the current renewables obligation, with offshore wind priced at £155/MWh (EUR 183/MWh) and onshore at £100/MWh up until 2016/17.

In July last year, Centrica said it was planning to make a decision on Race Bank at the beginning of 2013. The aim was to have brought the project online by 2017 in order to keep the project out of the CfD framework.

Centrica was given the right to go ahead with the project in June 2012. it said in February that it was willing to commit no more than £200m of its own funds. It is currently in talks to bring in other partners.

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