LEAST COST VERSUS DIVERSITY

The Office of Energy Regulation (OFFER) recommends that bids for contracts under the third Non Fossil Fuel Obligation should be chosen either purely on the basis of price or by setting different marginal price bands for each technology. Wind will gain little by either approach. The British Wind Energy Association (BWEA) objects to the OFFER suggestions, claiming they do not take into consideration the government's aims with NFFO-3 to increase diversification of energy supplies, reduce pollution and encourage competitive UK renewables industries. BWEA also suggests that smaller wind energy projects be judged separately due to their different cost structures.