BEIS publishes consultation outcome on DPA business model

Article summary

The Department for Business, Energy & Industrial Strategy (BEIS) has published the response to its consultation on the Dispatchable Power Agreement (DPA) business model that ran from April–June 2022. BEIS received 14 responses, as generally technical in nature, with most respondents agreeing that the proposed Availability Payment component of the DPA does incentivise efficient decarbonisation. They also raised concerns on whether unabated running was possible due to the associated planning process and environmental permitting regime risks, and expressed that it should not be the Generator’s responsibility to update the DPA Counterparty on the recovery of the transport and storage network. BEIS further addressed incentivising investment in new build, re-powering and retrofit projects, ensuring there is appropriate testing of a facility’s performance and preventing overcompensation through a proposed gainshare mechanism, among other areas.