THE STATUS OF CCS IN THE UK PT II - UNPACKING CCS BUSINESS MODELS IN THE UK: POWER,

9 GGR Business Model Strike Price ❖ The Contract for Difference model will pay projects the difference between the Strike Price and the Reference Price. [...] ❖ The primary aim of the GGR Business Model is to support the production of negative emissions. [...] 19 How the DPA funding is calculated The Dispatchable Power Agreement is comprised of two components: - an availability payment: paid to provide the ‘missing money’ and enable the plant to be built - a variable payment: paid to ensure that the abated generator dispatches ahead of unabated alternative Availability Availability Payment Availability of Availability of Net Dependable T&S capacity Paym. [...] If the Reference Plant is not required to dispatch by the market then nor will the Generator be positioned in the merit order to dispatch by the Variable Payment. [...] the actual price achieved by the developer for negative emissions credits sold in approved markets) Season ahead reference price x Discounted primarily on the grounds of liquidity as it could affect the investability of the business model Quarter ahead reference price Intermittent x Ruled out due to a lack of long-term hedging arrangements which can expose the project to volatility that can also M.