Consultation outcome

Carbon capture, usage and storage (CCUS): Dispatchable Power Agreement business model

• From: Department for Business, Energy & Industrial Strategy
• Published: 12 April 2022
• Last updated: 15 November 2022 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

CCUS: government response to a consultation on the Dispatchable Power Agreement business model

PDF, 428 KB, 47 pages

Detail of outcome

The government response summarises the responses received and the government’s view on:

• proposed business model to support Power CCUS deployment in the 2020s
• the suitability of the proposed business model for incentivising efficient decarbonisation
  • ensuring that a Power CCUS Facility responds to electricity market price signals and consumer needs by providing flexible and mid-merit dispatchable output
  • incentivising investment in new build, re-powering and retrofit projects
  • ensuring that risk is fairly allocated to enable investment in projects and value for money for consumers
  • ensuring there is appropriate testing of a facility’s performance
  • preventing overcompensation through a proposed gainshare mechanism

This response will be of interest to CCUS stakeholders, including investors and developers in potential CCUS projects, the energy sector, industry and electricity consumers.

We have published the latest version of the Carbon capture, usage and storage Dispatchable Power Agreement (DPA) business model.

Detail of feedback received

We received 14 responses, 9 of which were from operators of power generation facilities or projects, and 3 from trade association bodies. The remaining responses were from a consultancy firm and a Charitable Foundation.

The responses were generally technical in nature in response to the specific design of the proposed contractual terms.

The DPA will be used in the negotiation / due diligence phase of the Track-1 Phase-2 of the Cluster Sequencing for Carbon Capture Usage and Storage Deployment process.

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Original consultation

Summary

We're seeking views on our proposed business model for industrial CCUS.

This consultation ran from
9:30am on 12 April 2022 to 11:45pm on 10 June 2022

Consultation description

Following business model updates in 2020 and 2021, this consultation seeks views on the full draft Dispatchable Power Agreement (DPA) for power Carbon Capture, Usage and Storage (CCUS). It covers:

• proposed DPA Terms and Conditions and DPA Front End Agreement
• proposed DPA Gain Share mechanism

This consultation will be of interest to CCUS stakeholders, including:

• investors and developers in potential CCUS projects
• the energy sector
• industry, including energy intensive industries

but any organisation or individual is welcome to respond.

Documents

Dispatchable Power Agreement (DPA): business model summary and consultation

PDF, 536 KB, 58 pages

Dispatchable Power Agreement (DPA) gain share guidance (Annex A)

PDF, 312 KB, 18 pages

Draft: Dispatchable Power Agreement (DPA) front end agreement

PDF, 294 KB, 19 pages

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Draft: Dispatchable Power Agreement (DPA) terms and conditions

PDF, 3.41 MB, 472 pages

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Draft: Dispatchable Power Agreement (DPA) gain share schedule

PDF, 924 KB, 114 pages

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Published 12 April 2022
Last updated 15 November 2022 + show all updates

1. 15 November 2022

   Government response published, alongside latest version of the CCUS Dispatchable Power Agreement business model.

2. 12 April 2022

   First published.