{
  "url": "https://openlegislation.uk/eu-decision-2015-658/annex-A/division-11",
  "json_url": "https://openlegislation.uk/eu-decision-2015-658/annex-A/division-11.json",
  "legislation": "eudn/2015/658",
  "legislation_title": "Commission Decision (EU) 2015/658 of 8 October 2014 on the aid measure SA.34947 (2013/C) (ex 2013/N) which the United Kingdom is planning to implement for support to the Hinkley Point C nuclear power station (notified under document C(2014) 7142) (Only the English version is authentic) (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2015-658",
  "path": "annex/A/division/11",
  "kind": "division",
  "number": null,
  "heading": null,
  "text": "Table 13\nBenchmark Power Purchase Agreement (PPA) projects\nIn tenders for Independent Water and Power Producer (IWPP) contracts in Abu Dhabi, which include a 20 year fixed-price water/power purchase agreement with inflation indexation, ‘the nominal internal rate of return (IRR) on equity is required to be not less than 13 per cent’. These projects will typically involve construction of technically — mature CCGT capacity under a lump sum, date-certain turnkey EPC contract, with provisions to compensate investors for any delays and deviations from the terms of the contract. See Independent water and power producers, Abu Dhabi Regulation & Supervision Bureau, http://rsb.gov.ae/assets/documents/231/infoiwpp.pdf. (Source: UK submission)\nhttp://www.gdfsuez.com/wp-content/uploads/2012/07/GDF-SUEZ-at-a-glance-060712-final.pdf Slide 8\nWhile the UK's submission quotes 9-15 per cent post-tax nominal rates of returns from the source given in (2), the Commission notes that this seems to ignore the ‘regulated and concession’ projects mentioned in that source. The Commission understands from (2) that the regulated and concession activities of GDF-Suez are indicated to realise around 5-13 per cent post-tax nominal project returns, with the most likely range being below 10 per cent.\nSource: UK submission, Table 2 — on Rate of Return, 10th September as well as (1) and (2) below.\nTechnology\nCCGT\nPPA projects\nGearing\n< 80 per cent\nUnknown\nCost of debt\nUnknown\nUnknown\nNominal target return on equity (post-tax)\n> 13 per cent\nNominal target project return (post-tax)\n9-15 per cent\nInvestment horizon (asset life)\n25 years\nVarious\nInvestment size\nVarious\nVarious\nDegree of revenue certainty\n20 year PPA\nPPA\nLevel of construction risk compared to HPC\nLower-EPC contract-based, well-known technology\nUnknown but likely lower\nLevel of operating risk compared to HPC\nLower\nUnknown\nLevel of financing risk\nLower shorter construction period\nUnknown but likely lower\nContingent equity required\nUnknown\nUnknown\nReferences",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "While the UK's submission quotes 9-15 per cent post-tax nominal rates of returns from the source given in (2), the Commission notes that this seems to ignore the ‘regulated and concession’ projects mentioned in that source. The Commission understands from (2) that the regulated and concession activities of GDF-Suez are indicated to realise around 5-13 per cent post-tax nominal project returns, with the most likely range being below 10 per cent."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "In tenders for Independent Water and Power Producer (IWPP) contracts in Abu Dhabi, which include a 20 year fixed-price water/power purchase agreement with inflation indexation, ‘the nominal internal rate of return (IRR) on equity is required to be not less than 13 per cent’. These projects will typically involve construction of technically — mature CCGT capacity under a lump sum, date-certain turnkey EPC contract, with provisions to compensate investors for any delays and deviations from the terms of the contract. See Independent water and power producers, Abu Dhabi Regulation & Supervision Bureau, http://rsb.gov.ae/assets/documents/231/infoiwpp.pdf. (Source: UK submission)"
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "http://www.gdfsuez.com/wp-content/uploads/2012/07/GDF-SUEZ-at-a-glance-060712-final.pdf Slide 8"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2015/658/annex/A/division/11",
    "retrieved_at": "2026-11-01T15:14:22.986865+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}