Latest CfD Auction–Offshore Wind Only Double Market Price

Harrabin still does not get it:

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Energy from offshore wind in the UK will be cheaper than electricity from new nuclear power for the first time.

The cost of subsidies for new offshore wind farms has halved since the last 2015 auction for clean energy projects

Two firms said they were willing to build offshore wind farms for a subsidy of £57.50 per megawatt hour for 2022-23.

This compares with the new Hinkley Point C nuclear plant securing subsidies of £92.50 per megawatt hour.

Nuclear firms said the UK still needed a mix of low-carbon energy, especially for when wind power was not available.

http://www.bbc.co.uk/news/business-41220948

Comparing intermittent wind power with a reliable, dispatchable source, such as nuclear, is meaningless, as we still need to pay for the latter to serve as back up capacity.

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https://www.gov.uk/government/publications/contracts-for-difference-cfd-second-allocation-round-results

The above Strike Prices are at 2012 prices, meaning that at current prices the Triton Knoll project will cost £81/MWh, nearly double the market price of £45/MWh

Assuming market prices remain the same, the three offshore wind projects alone will earn £269 million a year in subsidies, paid for by electricity bill payers (based on the developers’ seemingly optimistic output assumptions).

Harrabin has made much of the fact that offshore wind prices have come down so much in the last few years. This, however, raises the question of why the government was prepared to pay so much over the odds in the first place. For instance, the initial set of projects signed off by Ed Davey without an auction four years ago is costing up to £161/MWh.

It is claimed that costs have come down due to the learning curve, but even if true, why should the UK be the guinea pig?

In their rush to get renewable capacity built, the coalition government has wasted billions of pounds.

It is estimated that these new projects will supply just 2% of the UK’s total electricity.

Read more at Not a lot of People Know That

Comments (1)

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    MCPR

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    What is the price of wind energy for vital and emergency services on calm days?

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