The only thing that has changed since 2019 is the rapid decarbonisation of the grid.
The addition of the newer, cheaper offshore wind farms has not had a significant impact on the subsidy per MWh. The reduction in average strike price has been overwhelmed by a combination of the indexation upwards in April...
It is clear our bills are going to continue to rise for the foreseeable future as cheap gas is forced out in favour of expensive renewables.
But because of subsidies, wind farms rake in the money whether the wind blows or not; their price is guaranteed. It is dispatchable generators, such as gas and nuclear, which have to pay for this market volatility.
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 news that offshore wind prices will rise to over £100/MWh in the next round of CfDs,…
£61/MWh works out at about £85/MWh, which gives the lie to repeated claims of just how cheap solar power is.
Despite Orsted’s protestations, there is an increasing likelihood that they will pull the plug on Hornsea.
Most renewable output is still subsidised via Renewable Obligations.
The wheels are falling off the offshore wind bandwagon:
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