{"id":255805,"date":"2023-05-03T20:14:52","date_gmt":"2023-05-03T18:14:52","guid":{"rendered":"https:\/\/climatescience.press\/?p=255805"},"modified":"2023-05-03T20:14:55","modified_gmt":"2023-05-03T18:14:55","slug":"cfd-indexation-to-cost-energy-users-360-million-this-year","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=255805","title":{"rendered":"CfD Indexation To Cost Energy Users \u00a3360 Million This Year"},"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 Contracts for Difference introduced by Ed Davey were poorly designed from the start, and are now costing energy users a fortune.<\/p>\n\n\n\n

We already know that the contracts place no obligation whatsoever on generators to actually take up their options, enabling them to take advantage of much higher market prices as a result.<\/p>\n\n\n\n

But just as costly has been the decision to index link strike prices each year for inflation. Given that most of the cost of a wind or solar farm is the capital cost, the indexation should only have applied to the operational cost.<\/p>\n\n\n\n

This year\u2019s price rise took effect at the beginning of April, and for offshore wind farms averages 11.9%. (For some reason I have not got to the bottom of, the increases vary slightly between generators).<\/p>\n\n\n\n

This will cost energy users about an extra \u00a3360 million a year, based on last year\u2019s outputs for all CfD generators. It puts the average cost of offshore wind up to about \u00a3175\/MWh, compared to the current market price of around \u00a3100\/MWh.<\/p>\n\n\n\n

Since 2019, prices have risen by about 23%, costing consumers around \u00a3700 million a year now in total.<\/p>\n","protected":false},"excerpt":{"rendered":"

Since 2019, prices have risen by about 23%, costing consumers around \u00a3700 million a year now in total.<\/p>\n","protected":false},"author":121246920,"featured_media":255809,"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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_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":[691818727,691818128,691819284],"class_list":["post-255805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-contracts-for-difference","tag-energy","tag-wind-or-solar-farm","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0ukoffshorewindfarm2-1920x1386-1.jpg?fit=1920%2C1386&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-14xT","jetpack-related-posts":[{"id":254418,"url":"https:\/\/climatescience.press\/?p=254418","url_meta":{"origin":255805,"position":0},"title":"Letter 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