{"id":288260,"date":"2023-11-20T19:56:08","date_gmt":"2023-11-20T18:56:08","guid":{"rendered":"https:\/\/climatescience.press\/?p=288260"},"modified":"2023-11-20T19:56:11","modified_gmt":"2023-11-20T18:56:11","slug":"offshore-wind-costs","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=288260","title":{"rendered":"Offshore Wind Costs"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

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

The UK government has increased the strike price caps for the upcoming Contracts for Different round and committed to an offshore wind-only pot.<\/em><\/strong><\/p>\n\n\n\n

The Administrative Strike Price for fixed-foundation bidders in Allocation Round 6 will be \u00a373 per megawatt-hour, up 66% on the \u00a344\/MWh in AR5 that failed to attract any entries.<\/em><\/strong><\/p>\n\n\n\n

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

\"\"
https:\/\/renews.biz\/89521\/uk-hikes-offshore-wind-cfd-price-cap-by-66\/<\/a><\/figcaption><\/figure>\n\n\n\n

Following the news that offshore wind prices will rise to over \u00a3100\/MWh in the next round of CfDs, it is worthwhile recapping what we are currently paying existing wind farms.<\/p>\n\n\n\n

The older wind farms, which are covered by ROCs, are currently paid a subsidy of \u00a3125\/MWh, on top of the market price for the electricity they produce, which was \u00a396\/MWh in September. In September therefore we paid a total of \u00a3221\/MWh. ROC account for about a half of total generation.<\/p>\n\n\n\n

Newer wind farms are paid via CfDs. Theses guaranteed strike prices vary from one wind farm to another, but in September the average was \u00a3176\/MWh.<\/p>\n\n\n\n

There are of course a couple of offshore generators which have refused to trigger their CfDs at the low prices they originally agreed to, and these receive the market price instead.<\/p>\n\n\n\n

CfD strike prices are guaranteed and index linked for 15 years, so even the oldest projects will still be subsidised well into the 2030s.<\/p>\n\n\n\n

Based on current market prices, we are paying a total annual subsidy of \u00a34.8 billion to offshore wind, on top of the wider system costs. With a government offshore target<\/a> of 50GW capacity by 2030, this subsidy will rise to over \u00a311 billion a year.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK government has increased the strike price caps for the upcoming Contracts for Different round and committed to an offshore wind-only pot. The Administrative Strike Price for fixed-foundation bidders in Allocation Round 6 will be \u00a373 per megawatt-hour, up 66% on the \u00a344\/MWh in AR5 that failed to attract any entries. From NOT A […]<\/p>\n","protected":false},"author":121246920,"featured_media":288265,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","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_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"The Administrative Strike Price for fixed-foundation bidders in Allocation Round 6 will be \u00a373 per megawatt-hour, up 66% on the \u00a344\/MWh in AR5 that failed to attract any entries.","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"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":[691824662,691818345,691824661,691818299],"class_list":{"0":"post-288260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-11-billion-a-year","9":"tag-cfd","10":"tag-offshore-wind-prices","11":"tag-subsidies","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-483.png?fit=1600%2C1417&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1cZm","jetpack-related-posts":[{"id":390678,"url":"https:\/\/climatescience.press\/?p=390678","url_meta":{"origin":288260,"position":0},"title":"New Offshore Wind Strike Prices More Than Double Cost Of Gas\u00a0Power","author":"uwe.roland.gross","date":"25\/07\/2025","format":false,"excerpt":"It destroys once and for all the myth that renewables are cheaper than gas.","rel":"","context":"In \"Contract for Difference (CfD)\"","block_context":{"text":"Contract for Difference (CfD)","link":"https:\/\/climatescience.press\/?tag=contract-for-difference-cfd"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-2.-Mai-2025-12_52_05-1.png?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-2.-Mai-2025-12_52_05-1.png?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-2.-Mai-2025-12_52_05-1.png?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-2.-Mai-2025-12_52_05-1.png?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":391236,"url":"https:\/\/climatescience.press\/?p=391236","url_meta":{"origin":288260,"position":1},"title":"New Offshore Wind Is Now Twice The Price Of\u00a0Gas","author":"uwe.roland.gross","date":"28\/07\/2025","format":false,"excerpt":"The main factor is the UK Emissions Trading Scheme (UK ETS), effectively a carbon tax. CCGT plant operators must purchase allowances to cover the amount of CO2 emitted. The current market price for these allowances is around \u00a350\/Tonne CO2.","rel":"","context":"In \"carbon dioxide (CO\u2082)\"","block_context":{"text":"carbon dioxide (CO\u2082)","link":"https:\/\/climatescience.press\/?tag=carbon-dioxide-co%e2%82%82"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-13.-Juni-2025-08_56_09.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-13.-Juni-2025-08_56_09.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-13.-Juni-2025-08_56_09.png?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-13.-Juni-2025-08_56_09.png?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/ChatGPT-Image-13.-Juni-2025-08_56_09.png?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":365399,"url":"https:\/\/climatescience.press\/?p=365399","url_meta":{"origin":288260,"position":2},"title":"Miliband\u2019s Net Zero Plans Torpedoed by UK\u2019s Top Offshore Wind Developer as \u00d8rsted Axes Major Projects","author":"uwe.roland.gross","date":"08\/02\/2025","format":false,"excerpt":"On Wednesday, \u00d8rsted, the\u00a0leading offshore wind\u00a0developer in the UK,\u00a0announced\u00a0it is cutting its investment plans out to 2030 by 25%.","rel":"","context":"In \"Ed Miliband\"","block_context":{"text":"Ed Miliband","link":"https:\/\/climatescience.press\/?tag=ed-miliband"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":398722,"url":"https:\/\/climatescience.press\/?p=398722","url_meta":{"origin":288260,"position":3},"title":"Mitsubishi Can\u2019t Make Money Out Of Offshore Wind Even At\u00a0\u00a3151\/MWh","author":"uwe.roland.gross","date":"29\/08\/2025","format":false,"excerpt":"Consortia in which Mitsubishi Corporation is the main stakeholder have been selected to develop all of the projects offered in Japan\u2019s first fixed-bottom offshore wind auction.","rel":"","context":"In \"Japan\"","block_context":{"text":"Japan","link":"https:\/\/climatescience.press\/?tag=japan"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/08\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/08\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/08\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/08\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/08\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":341560,"url":"https:\/\/climatescience.press\/?p=341560","url_meta":{"origin":288260,"position":4},"title":"AR6 Results","author":"uwe.roland.gross","date":"05\/09\/2024","format":false,"excerpt":"The price for new electricity from offshore wind has risen to \u00a382\/MWh in current prices, a significant 58% increase since the previous successful auction. 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