PS23278 - Assessing the costs and benefits of the non-price factors in CfDs - MC

The objective of this project will be to design a counterfactual and then in detail to appraise the impacts, including costs and benefits of each non-price factor. The non-price factors are as follows (more details will be shared with the successful bidder):

• Deprived areas (this NPF would aim to reward a project's investments in areas near deployment zones where there are greater levels of socio-economic deprivation)
• Small and medium-sized enterprises (this NPF would aim to reward projects for spending a minimum percentage of total project spend on small and medium-sized enterprises (SMEs) i.e., businesses with less than 250 employees and turnover under €50 million, as per standard UK and EU definitions) as part of their supply chain;
• Decarbonisation (this NPF would aim to reward projects with the least carbon intensive supply chains. As a result, we propose that projects are scored on decarbonisation against the methodology from the Sustainability Joint Industry Programme, a collaboration between the Carbon Trust and offshore wind developers, which is planned to be made publicly available and will offer a standardised means of measuring carbon emissions through the lifecycle of offshore wind projects. A number of developers are working in collaboration with the Carbon Trust to develop the methodology, and this criteria would incentivise developers to act on reducing the emissions measured.)
• Environmentally sustainable supply chains (this NPF would aim to reward projects which use a higher proportion of suppliers operating environmentally sustainable manufacturing and procurement practices)
• DESNZ may add an additional NPF, TBC.