UK CfD auction sees renewables set record-low strike price

Posted: September 12, 2017 in Uncategorized

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Two offshore wind farms to be built for just £57.50 per MWh following today’s second Contracts for Difference subsidy auction – well below price government guaranteed for Hinkley Point C nuclear farm.

Offshore wind is now cheaper than nuclear and gas in the U.K. following the second Contracts for Difference (CfD) subsidy auction that saw two developers win the rights to build offshore wind farms for just £57.50/MWh ($75.83/MWh).

This strike price – achieved by Denmark’s Dong Energy and Spain’s EDP – is 50% below the guaranteed development price for offshore wind set just two years ago, and is far cheaper than the £92.50/MWh agreed between the government and EDF for the nuclear power station at Hinkley Point.

The stunning performance of offshore wind and Advanced Conversion Technologies (ACT) in the auction prompted a flurry of calls from prominent voices for Hinkley Point C to be finally scrapped. The Green Party’s co-leader Caroline Lucas remarked that these record low prices for wind power should be a nail in the coffin for new nuclear.

“While clean, green wind power has the potential to seriously cut people’s bills – the government’s undying commitment to new nuclear risks locking us into sky high prices for years to come,” Lucas said.

The Renewable Energy Association’s head of policy and external affairs, James Court, added: “These results show that renewables are now the most cost-effective form of any energy generation, which can future-proof both the U.K. grid and provide sustainable new jobs in the U.K. . .”

Source: UK CfD auction sees renewables set record-low strike price

Comments
  1. auntyuta says:

    “The Green Party’s co-leader Caroline Lucas remarked that these record low prices for wind power should be a nail in the coffin for new nuclear.”

    Yes, let’s hope that this puts nuclear off the table for good!

  2. I think it’s pretty much happened, Aunty. Now all we need to do is figure out what to do with the nuclear waste.

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