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Renewable power generators win electricity contracts in the UK

UK Minister for Energy, John Battle, has met members of the Renewable Generators’ Consortium (RGC) at a meeting to mark the biggest single deal of its kind in UK renewable power. Over 40 members of the Consortium have signed contracts to supply a total of 120MW of renewable electricity in the open market after 1 January 1999.

RGC was formed with the support of the Department of Trade and Industry. It enables generators who have won Non Fossil Fuel Obligation (NFFO 1 and 2) contracts to negotiate collectively to sell their power in the open market. NFFO — a government initiative which provides a protective market for renewable power — includes small hydro less than 5MW and guarantees power contracts at premium prices for a set period, usually 15 years (see IWP&DC March 1998, pp14-15).

Four rounds of NFFO contracts have been awarded to date. NFFO 1 and NFFO 2 contracts end on 31 December 1998 and consequently RGC has undertaken a programme of negotiations with electricity suppliers, securing offers to purchase members of the Consortium’s power.