At a Glance: UK offshore wind strikes CfD jackpot

UK offshore wind’s mind-blowingly impressive CfD 3 winning bid prices announced on Friday (September 20) – at a 30% discount to average winning offers in the 2017 CfD auction, and around the level of current wholesale energy prices – was clearly the story of this year’s auction. And while the Department for Business, Energy & Industrial Strategy’s CfD 3 budget scale-back to GBP 60m announced in late 2018 – down from GBP 290m in 2017 – caused uproar at the time, the fact that the competition reached its 6GW cap last week suggests that the division had the measure of the offshore wind sector. Nevertheless, it also means that BEIS can no longer present offshore wind as less mature than onshore wind and solar PV, and there are certain to be renewed calls for the re-introduction of the technologies to future CfD auctions

Tagged as: Analysis, UK