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Energy Bill [HL]

LORDS NON-INSISTENCE AND AMENDMENT IN LIEU

[The page and line references are to Bill 92, the bill as first printed for the Commons.]

After Clause 79

COMMONS AMENDMENT 7

7

Insert the following new Clause—

 

         

“Onshore wind power: circumstances in which certificates may be issued after

 

31 March 2016

 

(1)    

Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.

 

(2)    

After section 32LC (inserted by section [Onshore wind power: closure of

 

renewables obligation on 31 March 2016] of this Act) insert—

 

“32LD

Onshore wind generating stations accredited, or additional

 

capacity added, on or before 31 March 2016

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated by an onshore wind generating station which was

 

accredited on or before 31 March 2016, and

 

(b)    

generated using—

 

(i)    

the original capacity of the station, or

 

(ii)    

additional capacity which in the Authority’s view

 

first formed part of the station on or before 31 March

 

2016.

 

32LE  

Onshore wind generating stations accredited, or additional

 

capacity added, between 1 April 2016 and 31 March 2017: grid or

 

radar delay condition met

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated using the original capacity of an onshore wind

 

generating station—

 

(i)    

which was accredited during the period beginning

 

with 1 April 2016 and ending with 31 March 2017,

 

and

 
 

 
 

2

 
 

(ii)    

in respect of which the grid or radar delay condition

 

is met, or

 

(b)    

generated using additional capacity of an onshore wind

 

generating station, where—

 

(i)    

the station was accredited on or before 31 March

 

2016,

 

(ii)    

in the Authority’s view, the additional capacity first

 

formed part of the station during the period

 

beginning with 1 April 2016 and ending with 31

 

March 2017, and

 

(iii)    

the grid or radar delay condition is met in respect of

 

the additional capacity.

 

32LF  

Onshore wind generating stations accredited, or additional

 

capacity added, on or before 31 March 2017: approved

 

development condition met

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated using the original capacity of an onshore wind

 

generating station—

 

(i)    

which was accredited on or before 31 March 2017,

 

and

 

(ii)    

in respect of which the approved development

 

condition is met, or

 

(b)    

generated using additional capacity of an onshore wind

 

generating station, where—

 

(i)    

the station was accredited on or before 31 March

 

2016,

 

(ii)    

in the Authority’s view, the additional capacity first

 

formed part of the station on or before 31 March

 

2017, and

 

(iii)    

the approved development condition is met in

 

respect of the additional capacity.

 

32LG  

Onshore wind generating stations accredited, or additional

 

capacity added, between 1 April 2017 and 31 March 2018: grid or

 

radar delay condition met

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated using the original capacity of an onshore wind

 

generating station—

 

(i)    

which was accredited during the period beginning

 

with 1 April 2017 and ending with 31 March 2018,

 

(ii)    

in respect of which the approved development

 

condition is met, and

 

(iii)    

in respect of which the grid or radar delay condition

 

is met, or

 

(b)    

generated using additional capacity of an onshore wind

 

generating station, where—

 

(i)    

the station was accredited on or before 31 March

 

2016,

 
 

 
 

3

 
 

(ii)    

in the Authority’s view, the additional capacity first

 

formed part of the station during the period

 

beginning with 1 April 2017 and ending with 31

 

March 2018,

 

(iii)    

the approved development condition is met in

 

respect of the additional capacity, and

 

(iv)    

the grid or radar delay condition is met in respect of

 

the additional capacity.

 

32LH  

Onshore wind generating stations accredited, or additional

 

capacity added, between 1 April 2017 and 31 December 2017:

 

investment freezing condition met

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated using the original capacity of an onshore wind

 

generating station—

 

(i)    

which was accredited during the period beginning

 

with 1 April 2017 and ending with 31 December

 

2017, and

 

(ii)    

in respect of which both the approved development

 

condition and the investment freezing condition are

 

met, or

 

(b)    

generated using additional capacity of an onshore wind

 

generating station, where—

 

(i)    

the station was accredited on or before 31 March

 

2016,

 

(ii)    

in the Authority’s view, the additional capacity first

 

formed part of the station during the period

 

beginning with 1 April 2017 and ending with 31

 

December 2017, and

 

(iii)    

both the approved development condition and the

 

investment freezing condition are met in respect of

 

the additional capacity.

 

32LI  

Onshore wind generating stations accredited, or additional

 

capacity added, between 1 January 2018 and 31 December 2018:

 

grid or radar delay condition met

 

The circumstances set out in this section are where the electricity is—

 

(a)    

generated using the original capacity of an onshore wind

 

generating station—

 

(i)    

which was accredited during the period beginning

 

with 1 January 2018 and ending with 31 December

 

2018,

 

(ii)    

in respect of which both the approved development

 

condition and the investment freezing condition are

 

met, and

 

(iii)    

in respect of which the grid or radar delay condition

 

is met, or

 

(b)    

generated using additional capacity of an onshore wind

 

generating station, where—

 

(i)    

the station was accredited on or before 31 March

 

2016,

 
 

 
 

4

 
 

(ii)    

in the Authority’s view, the additional capacity first

 

formed part of the station during the period

 

beginning with 1 January 2018 and ending with 31

 

December 2018,

 

(iii)    

both the approved development condition and the

 

investment freezing condition are met in respect of

 

the additional capacity, and

 

(iv)    

the grid or radar delay condition is met in respect of

 

the additional capacity.

 

32LJ  

The approved development condition

 

(1)    

This section applies for the purposes of sections 32LF to 32LI.

 

(2)    

The approved development condition is met in respect of an

 

onshore wind generating station if the documents specified in

 

subsections (4), (5) and (6) were provided to the Authority with the

 

application for accreditation of the station.

 

(3)    

The approved development condition is met in respect of

 

additional capacity if the documents specified in subsections (4), (5)

 

and (6) were provided to the Authority on or before the date on

 

which the Authority made its decision that the additional capacity

 

could form part of an onshore wind generating station.

 

(4)    

The documents specified in this subsection are—

 

(a)    

evidence that—

 

(i)    

planning permission for the station or additional

 

capacity was granted on or before 18 June 2015, and

 

(ii)    

any conditions as to the time period within which

 

the development to which the permission relates

 

must be begun have not been breached,

 

(b)    

evidence that—

 

(i)    

planning permission for the station or additional

 

capacity was refused on or before 18 June 2015, but

 

granted after that date following an appeal or

 

judicial review, and

 

(ii)    

any conditions as to the time period within which

 

the development to which the permission relates

 

must be begun have not been breached,

 

(c)    

evidence that—

 

(i)    

an application for 1990 Act permission or 1997 Act

 

permission was made on or before 18 June 2015 for

 

the station or additional capacity,

 

(ii)    

the period allowed under section 78(2) of the 1990

 

Act or (as the case may be) section 47(2) of the 1997

 

Act ended on or before 18 June 2015 without any of

 

the things mentioned in section 78(2)(a) to (b) of the

 

1990 Act or section 47(2)(a) to (c) of the 1997 Act

 

being done in respect of the application,

 

(iii)    

the application was not referred to the Secretary of

 

State, Welsh Ministers or Scottish Ministers in

 

accordance with directions given under section 77 of

 

the 1990 Act or section 46 of the 1997 Act,

 
 

 
 

5

 
 

(iv)    

1990 Act permission or 1997 Act permission was

 

granted after 18 June 2015 following an appeal, and

 

(v)    

any conditions as to the time period within which

 

the development to which the permission relates

 

must be begun have not been breached, or

 

(d)    

a declaration by the operator of the station that, to the best

 

of the operator’s knowledge and belief, planning

 

permission is not required for the station or additional

 

capacity.

 

(5)    

The documents specified in this subsection are—

 

(a)    

a copy of an offer from a licensed network operator made on

 

or before 18 June 2015 to carry out grid works in relation to

 

the station or additional capacity, and evidence that the

 

offer was accepted on or before that date (whether or not the

 

acceptance was subject to any conditions or other terms), or

 

(b)    

a declaration by the operator of the station that, to the best

 

of the operator’s knowledge and belief, no grid works were

 

required to be carried out by a licensed network operator in

 

order to enable the station to be commissioned or the

 

additional capacity to form part of the station.

 

(6)    

The documents specified in this subsection are a declaration by the

 

operator of the station that, to the best of the operator’s knowledge

 

and belief, as at 18 June 2015 a relevant developer of the station or

 

additional capacity (or a person connected, within the meaning of

 

section 1122 of the Corporation Tax Act 2010, with a relevant

 

developer of the station or additional capacity)—

 

(a)    

was an owner or lessee of the land on which the station or

 

additional capacity is situated,

 

(b)    

had entered into an agreement to purchase or lease the land

 

on which the station or additional capacity is situated,

 

(c)    

had an option to purchase or to lease the land on which the

 

station or additional capacity is situated, or

 

(d)    

was a party to an exclusivity agreement in relation to the

 

land on which the station or additional capacity is situated.

 

(7)    

In this section—

 

“the 1990 Act” means the Town and Country Planning Act

 

1990;

 

“1990 Act permission” means planning permission under the

 

1990 Act (except outline planning permission, within the

 

meaning of section 92 of that Act);

 

“the 1997 Act” means the Town and Country Planning

 

(Scotland) Act 1997;

 

“1997 Act permission” means planning permission under the

 

1997 Act (except planning permission in principle, within

 

the meaning of section 59 of that Act);

 

“exclusivity agreement”, in relation to land, means an

 

agreement by the owner or a lessee of the land not to permit

 

any person (other than the persons identified in the

 

agreement) to construct an onshore wind generating station

 

on the land;

 
 

 
 

6

 
 

“planning permission” means—

 

(a)    

consent under section 36 of this Act,

 

(b)    

1990 Act permission,

 

(c)    

1997 Act permission, or

 

(d)    

development consent under the Planning Act 2008.

 

32LK  

The investment freezing condition

 

(1)    

This section applies for the purposes of sections 32LH and 32LI.

 

(2)    

The investment freezing condition is met in respect of an onshore

 

wind generating station if the documents specified in subsection (4)

 

were provided to the Authority with the application for

 

accreditation of the station.

 

(3)    

The investment freezing condition is met in respect of additional

 

capacity if the documents specified in subsection (4) were provided

 

to the Authority on or before the date on which the Authority made

 

its decision that the additional capacity could form part of an

 

onshore wind generating station.

 

(4)    

The documents specified in this subsection are—

 

(a)    

a declaration by the operator of the station that, to the best

 

of the operator’s knowledge and belief, as at the Royal

 

Assent date—

 

(i)    

the relevant developer required funding from a

 

recognised lender before the station could be

 

commissioned or additional capacity could form

 

part of the station,

 

(ii)    

a recognised lender was not prepared to provide

 

that funding until enactment of the Energy Act 2016,

 

because of uncertainty over whether the Act would

 

be enacted or its wording if enacted, and

 

(iii)    

the station would have been commissioned, or the

 

additional capacity would have formed part of the

 

station, on or before 31 March 2017 if the funding

 

had been provided before the Royal Assent date,

 

and

 

(b)    

a letter or other document, dated on or before the date

 

which is 28 days after the Royal Assent date, from a

 

recognised lender confirming (whether or not the

 

confirmation is subject to any conditions or other terms) that

 

the lender was not prepared to provide funding in respect

 

of the station or additional capacity until enactment of the

 

Energy Act 2016, because of uncertainty over whether the

 

Act would be enacted or its wording if enacted.

 

(5)    

In this section—

 

“recognised lender” means a provider of debt finance which

 

has been issued with an investment grade credit rating by a

 

registered credit rating agency;

 

“the Royal Assent date” means the date on which the Energy

 

Act 2016 is passed.

 
 

 
 

7

 
 

(6)    

For the purposes of the definition of “recognised lender” in

 

subsection (5)—

 

“investment grade credit rating” means a credit rating

 

commonly understood by registered credit rating agencies

 

to be investment grade;

 

“registered credit rating agency” means a credit rating agency

 

registered in accordance with Regulation (EC) No 1060/

 

2009 of the European Parliament and the Council of 16

 

September 2009 on credit rating agencies.

 

32LL  

The grid or radar delay condition

 

(1)    

This section applies for the purposes of sections 32LE, 32LG and

 

32LI.

 

(2)    

The grid or radar delay condition is met in respect of an onshore

 

wind generating station if, on or before the date on which the

 

Authority made its decision to accredit the station, the documents

 

specified in subsection (4), (5) or (6) were—

 

(a)    

submitted by the operator of the station, and

 

(b)    

received by the Authority.

 

(3)    

The grid or radar delay condition is met in respect of additional

 

capacity if, on or before the date on which the Authority made its

 

decision that the additional capacity could form part of an onshore

 

wind generating station, the documents specified in subsection (4),

 

(5) or (6) were—

 

(a)    

submitted by the operator of the station, and

 

(b)    

received by the Authority.

 

(4)    

The documents specified in this subsection are—

 

(a)    

evidence of an agreement with a network operator (“the

 

relevant network operator”) to carry out grid works in

 

relation to the station or additional capacity (“the relevant

 

grid works”);

 

(b)    

a copy of a document written by, or on behalf of, the

 

relevant network operator which estimated or set a date for

 

completion of the relevant grid works (“the planned grid

 

works completion date”) which was no later than the

 

primary date;

 

(c)    

a letter from the relevant network operator confirming

 

(whether or not such confirmation is subject to any

 

conditions or other terms) that—

 

(i)    

the relevant grid works were completed after the

 

planned grid works completion date, and

 

(ii)    

in the relevant network operator’s opinion, the

 

failure to complete the relevant grid works on or

 

before the planned grid works completion date was

 

not due to any breach by a generating station

 

developer of any agreement with the relevant

 

network operator; and

 

(d)    

a declaration by the operator of the station that, to the best

 

of the operator’s knowledge and belief, the station would

 

have been commissioned, or the additional capacity would

 
 

 
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Revised 26 April 2016