DESNZ, CCUS Transport and Storage Regulatory Investment Model Support Scheme

  • This scheme will provide support to two Transport and Storage networks within the Transport and Storage Regulatory Investment Model and wider Government carbon capture, usage and storage (CCUS) programme.
  • Support under the scheme will be provided by a Revenue Support Agreement (balancing revenue collection with allowed revenue) and a Government Support Package (with three agreements covering decommissioning funding gaps, supplementary compensation and discontinuation compensation).
  • Our key takeaways from the Subsidy Advice Unit (SAU) report are that:
    • the impact on the proportionality of the scheme from setting up the business models for capture projects should be thoroughly outlined;
    • assessments of and detail on the potential impacts on competition across the supply chain, networks and developing markets should be included;
    • the benefits to potential shareholders from the scheme should be addressed, including any competitive advantage they derive from the scheme;
    • where there are different subsidy mechanisms, the interaction between these should be clearly outlined; and
    • in line with the Statutory Guidance, reports should outline how they intend to stay consistent in their delivery throughout the scheme’s lifetime.

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Posted in Subsidy Advice Report Tracker.