{"id":252921,"date":"2023-04-14T17:52:22","date_gmt":"2023-04-14T15:52:22","guid":{"rendered":"https:\/\/climatescience.press\/?p=252921"},"modified":"2023-04-14T17:52:25","modified_gmt":"2023-04-14T15:52:25","slug":"contracts-for-difference-subsidies-on-the-rise-again","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=252921","title":{"rendered":"Contracts for Difference Subsidies On The Rise Again"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

By Paul Homewood<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The renewable lobby<\/a> were quick to brag that the Contracts for Difference scheme was paying back money to energy users last year, when market prices of electricity spiked. But they have remained strangely silent since, now that market prices have fallen back, with the result that the subsidy conveyor belt is now running again.<\/p>\n\n\n\n

In Q1 this year, subsidies for wind and solar power via CfDs totted up to \u00a3222 million, which will filter through on to our bills in months to come. Although onshore wind and solar still show negative subsidies of \u00a39 million, offshore wind, which makes up 92% of the generation, gobbled up a subsidy of \u00a3231 million, with an average strike price of \u00a3166\/MWh, compared to a market price of \u00a3120\/MWh.<\/p>\n\n\n\n

In reality, the subsidy is much bigger than the official figures say. The Emissions Trading Scheme<\/a> adds \u00a331\/MWh to market prices, by artificially increasing the cost of gas generation. The real, underlying market price is therefore about \u00a389\/MWh, meaning that the real subsidy under CfD is \u00a3167 million higher than shown.<\/p>\n\n\n\n

CfDs of course are just the tip of the iceberg, as far as subsidies go. The Renewable Obligation scheme will hand renewable generators about \u00a36.8 billion this year, about 12% higher than last year thanks to indexation.<\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0renewable lobby\u00a0were quick to brag that the Contracts for Difference scheme was paying back money to energy users last year, when market prices of electricity spiked. But they have remained strangely silent since, now that market prices have fallen back, with the result that the subsidy conveyor belt is now running again.<\/p>\n","protected":false},"author":121246920,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818301,691818446,691818447,691818299],"class_list":["post-252921","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-offshore-wind","tag-onshore-wind","tag-solar","tag-subsidies","has-post-thumbnail","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-13Nn","jetpack-related-posts":[{"id":283571,"url":"https:\/\/climatescience.press\/?p=283571","url_meta":{"origin":252921,"position":0},"title":"CfD Subsidies Increasing\u00a0Again","author":"uwe.roland.gross","date":"10\/16\/2023","format":false,"excerpt":"What kind of industry is this that only runs on subsidies? From NOT A LOT OF PEOPLE KNOW THAT By Paul Homewood Contracts for Difference subsidies are still costing energy users a lot of money. Between April and September 2023, subsidies of \u00a3640 million were paid out, nearly all for\u2026","rel":"","context":"In \"Contracts for Difference\"","block_context":{"text":"Contracts for Difference","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0offshore-wind-farm.jpg?fit=1200%2C754&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0offshore-wind-farm.jpg?fit=1200%2C754&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0offshore-wind-farm.jpg?fit=1200%2C754&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0offshore-wind-farm.jpg?fit=1200%2C754&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0offshore-wind-farm.jpg?fit=1200%2C754&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":277959,"url":"https:\/\/climatescience.press\/?p=277959","url_meta":{"origin":252921,"position":1},"title":"Net Zero Offshore\u00a0Wind","author":"uwe.roland.gross","date":"09\/09\/2023","format":false,"excerpt":"The Government has today announced the results of the fifth auction of Contracts for Difference (CfD) subsidies for renewable electricity generation. Its has been a failure, and may represent a landmark moment for renewables policy.","rel":"","context":"In \"Contracts for Difference (CfD)\"","block_context":{"text":"Contracts for Difference (CfD)","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference-cfd"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":440607,"url":"https:\/\/climatescience.press\/?p=440607","url_meta":{"origin":252921,"position":2},"title":"The Dying Embers of Net Zero Propaganda","author":"uwe.roland.gross","date":"04\/20\/2026","format":false,"excerpt":"Physics hasn\u2019t changed: wind and solar are cheap when the wind blows and sun shines, but the system still needs firm capacity. Technology costs have fallen dramatically, and emissions have been displaced \u2014 but the transition\u2019s total system cost is still being socialised through bills and subsidies. Whether the embers\u2026","rel":"","context":"In \"Contracts for Difference (CfDs)\"","block_context":{"text":"Contracts for Difference (CfDs)","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference-cfds-2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-The-Dying-Embers-of-Net-Zero-Propaganda.jpg?fit=784%2C1168&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-The-Dying-Embers-of-Net-Zero-Propaganda.jpg?fit=784%2C1168&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-The-Dying-Embers-of-Net-Zero-Propaganda.jpg?fit=784%2C1168&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-The-Dying-Embers-of-Net-Zero-Propaganda.jpg?fit=784%2C1168&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":248584,"url":"https:\/\/climatescience.press\/?p=248584","url_meta":{"origin":252921,"position":3},"title":"Never Enough: Wind Industry Squanders Billions & Demands Even More Subsidies From Taxpayers","author":"uwe.roland.gross","date":"03\/19\/2023","format":false,"excerpt":"Net Zero Watch notes that since the CfD strike prices are inflation-indexed the industry\u2019s excuse does not hold water. On the contrary, the demand for tax breaks confirms that the low bids in the CfD auctions were never accurate reflections of underlying windpower costs.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-744.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-744.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-744.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-744.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-744.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":265581,"url":"https:\/\/climatescience.press\/?p=265581","url_meta":{"origin":252921,"position":4},"title":"As predicted, wind industry blackmails the UK \u2013 demands yet more subsidies","author":"uwe.roland.gross","date":"07\/05\/2023","format":false,"excerpt":"Net Zero Watch has urged the Government to stand up for consumers and businesses by rejecting the wind industry\u2019s latest demands for more\u00a0subsidies.","rel":"","context":"In \"Costs\"","block_context":{"text":"Costs","link":"https:\/\/climatescience.press\/?tag=costs"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/image-108.png?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/image-108.png?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/image-108.png?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/image-108.png?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":285197,"url":"https:\/\/climatescience.press\/?p=285197","url_meta":{"origin":252921,"position":5},"title":"Wind industry confirms Great Green\u00a0Lie","author":"uwe.roland.gross","date":"10\/26\/2023","format":false,"excerpt":"The Government has urged developers to \u201cact fairly\u201d after some of the UK largest wind farms delayed taking up \"green\" Government contracts, potentially allowing them to earn hundreds of millions of pounds more from consumers during the energy crisis. From Net Zero Watch Campaign group Net Zero Watch says that\u2026","rel":"","context":"In \"Energy Transition\"","block_context":{"text":"Energy Transition","link":"https:\/\/climatescience.press\/?tag=energy-transition"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Headlines02_360_210115-1140x570-1.jpg?fit=1140%2C570&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Headlines02_360_210115-1140x570-1.jpg?fit=1140%2C570&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Headlines02_360_210115-1140x570-1.jpg?fit=1140%2C570&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Headlines02_360_210115-1140x570-1.jpg?fit=1140%2C570&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Headlines02_360_210115-1140x570-1.jpg?fit=1140%2C570&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/252921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=252921"}],"version-history":[{"count":4,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/252921\/revisions"}],"predecessor-version":[{"id":252927,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/252921\/revisions\/252927"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=252921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=252921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=252921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}