Opportunism and competition in the non-Fossil fuel obligation

The Non-Fossil Fuel Order (NFFO), which consisted in competitive tendering for the development of Renewables Energy projects, was the main policy to promote electricity from Renewable Energy Sources for almost one decade in the United Kingdom. This paper focuses on the incentives faced by developers bidding for a contract under the NFFO and shows that the low building rate under this scheme is likely to have been not an unfortunate accident. This paper constitutes the first block of a study analysing the policy implications of the NFFO.