If you’re a renewable generator with an Investment Contract or Contracts for Difference (CFD) contract and want to find out more about applying to the Offtaker of Last Resort (OLR) scheme, this section is for you.
Getting the basics
The OLR is a government scheme that aims to help eligible generators when they cannot obtain a power purchase agreement (PPA) through normal commercial avenues. It does this by facilitating a backstop power purchase agreement (BPPA) between the generator and a licensed supplier via a competitive auction – an OLR auction.
It’s part of the government’s wider programme on Electricity Market Reform.
The terms of the BPPA have been set by the government. Electricity generated under a BPPA will be sold at a specified discount below the market reference price and a BPPA can last no longer than 12 months.
The scheme’s designed so you can enter into a BPPA quickly, so statutory deadlines apply to all parties involved in the OLR process; generators, suppliers and Ofgem.
Before you apply
Before you apply to the OLR scheme you should ensure you have read our OLR: Essential Guide for Renewable Generators to familiarise yourself with the rules of the scheme.
To be eligible to enter into a BPPA you must:
meet the specified eligibility criteria, and
provide all the necessary Project Information to us in the timescales required.
You should also be aware that failure to act according to the Regulations during the OLR process may result in your generating station being added to the Record of Ineligible Generating Stations for OLR.
Details about eligibility for the OLR scheme and how to apply are provided in the Essential Guide.
If you have questions about the OLR scheme and can't find the information you need on these pages, please contact us.