From NOT A LOT OF PEOPLE KNOW THAT
By Paul Homewood
https://renews.biz/89521/uk-hikes-offshore-wind-cfd-price-cap-by-66/
Following the information that offshore wind costs will rise to over £100/MWh within the subsequent spherical of CfDs, it’s worthwhile recapping what we’re presently paying present wind farms.
The older wind farms, that are coated by ROCs, are presently paid a subsidy of £125/MWh, on prime of the market value for the electrical energy they produce, which was £96/MWh in September. In September subsequently we paid a complete of £221/MWh. ROC account for a few half of complete era.
Newer wind farms are paid by way of CfDs. Theses assured strike costs fluctuate from one wind farm to a different, however in September the common was £176/MWh.
There are in fact a few offshore turbines which have refused to set off their CfDs on the low costs they initially agreed to, and these obtain the market value as a substitute.
CfD strike costs are assured and index linked for 15 years, so even the oldest tasks will nonetheless be subsidised nicely into the 2030s.
Based mostly on present market costs, we’re paying a complete annual subsidy of £4.8 billion to offshore wind, on prime of the broader system prices. With a authorities offshore goal of 50GW capability by 2030, this subsidy will rise to over £11 billion a yr.
