{"id":390678,"date":"2025-07-25T11:58:22","date_gmt":"2025-07-25T09:58:22","guid":{"rendered":"https:\/\/climatescience.press\/?p=390678"},"modified":"2025-07-25T11:58:39","modified_gmt":"2025-07-25T09:58:39","slug":"new-offshore-wind-strike-prices-more-than-double-cost-of-gas-power","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=390678","title":{"rendered":"New Offshore Wind Strike Prices More Than Double Cost Of Gas\u00a0Power"},"content":{"rendered":"\n
\"Stormy<\/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

DSENZ has just published the Administrative Strike Prices for the next round of Contracts for Difference, AR7:<\/strong><\/p>\n\n\n

\n
\"Table
https:\/\/www.gov.uk\/government\/publications\/contracts-for-difference-cfd-allocation-round-7-administrative-strike-prices-methodology-note<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

It destroys once and for all the myth that renewables are cheaper than gas.<\/em><\/strong> The price for offshore wind, for example, is set at \u00a3113\/MWh, at 2024 prices. But we can already add 3% to that to bring it into current prices \u2013 so that\u2019s around \u00a3116\/MWh.<\/p>\n\n\n\n

These prices are more than 11% higher than last year\u2019s auction round.<\/p>\n\n\n\n

It may be the case that the prices bid will come in slightly lower than these ASPs, which are the maximum on offer. But they inevitably be much higher than the cost of gas power.<\/p>\n\n\n\n

Natural gas is currently trading at 78p\/therm. Assuming fuel efficiency of 55%, fuel cost for a CCGT would work out at around \u00a349\/MWh. We are already paying CCGTs to provide standby, so this covers all the other overhead and running costs.<\/p>\n\n\n\n

Miliband needs another 25 GW of offshore wind power. At these prices, that will add \u00a36 billion a year to the cost of electricity.<\/p>\n\n\n\n

And this, of course, does not account for all the other indirect costs of intermittent renewables, such as grid balancing, grid upgrades and standby cover.<\/p>\n\n\n\n

Worse still, Miliband has decided to extend the CfD contracts from 15 to 20 years \u2013 in short, we will be locking in these high prices for even longer.<\/p>\n\n\n\n

Onshore and solar power are little better, still both costlier than gas power. As for floating offshore wind at \u00a3271\/MWh, one can only conclude that Mad Miliband is intent on bankrupting the country.<\/p>\n\n\n\n

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

It destroys once and for all the myth that renewables are cheaper than gas. <\/p>\n","protected":false},"author":121246920,"featured_media":390684,"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":"Discover how new offshore wind strike prices soar above gas power costs, debunking the myth that renewables are cheaper. Learn more now!","jetpack_seo_html_title":"Offshore Wind Costs Surge: Higher Than Gas Power Prices?","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":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691834578,691831484,691818155,691818301],"class_list":{"0":"post-390678","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-contract-for-difference-cfd","9":"tag-energy-secretary-ed-miliband","10":"tag-gas","11":"tag-offshore-wind","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"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","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1DDg","jetpack-related-posts":[{"id":241512,"url":"https:\/\/climatescience.press\/?p=241512","url_meta":{"origin":390678,"position":0},"title":"Gas-Fired Power Is Now Cheaper Than Offshore Wind Again","author":"uwe.roland.gross","date":"25\/01\/2023","format":false,"excerpt":"Offshore wind farms subsidised by ROCs costs even more, They receive about \u00a3100\/MWh in subsidy on top of the market price of the electricity they sell, meaning they currently earn well over \u00a3200\/MWh. The Low Carbon Contracts data confirms that power prices are falling back.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1097.png?fit=1200%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1097.png?fit=1200%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1097.png?fit=1200%2C600&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1097.png?fit=1200%2C600&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1097.png?fit=1200%2C600&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":216383,"url":"https:\/\/climatescience.press\/?p=216383","url_meta":{"origin":390678,"position":1},"title":"The Fantasy World of Renewable Energy","author":"uwe.roland.gross","date":"30\/08\/2022","format":false,"excerpt":"It is difficult to avoid concluding that the whole story of the falling costs of renewable generation is sheer fantasy, a sort of energy industry Game of Thrones taking place in a parallel universe that bears an accidental similarity to our own world.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/08\/0Screenshot-2022-08-30-200247.png?fit=948%2C519&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/08\/0Screenshot-2022-08-30-200247.png?fit=948%2C519&ssl=1&resize=350%2C200 1x, 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(DESNZ)","link":"https:\/\/climatescience.press\/?tag=department-for-energy-security-and-net-zero-desnz"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPyWrx9QR2dBvTsN-0Bmgfo6jOqEkaZ8uZpAsNgTbZhGUjG2IXwM2Mh02EaI1M14l5Yy-jofxpZYRS4kzdRhsRn3WwN9X2swLUwsEg_L2f6jwQPEqkK6dVPKRbk6Q-1.jpeg?fit=1200%2C697&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPyWrx9QR2dBvTsN-0Bmgfo6jOqEkaZ8uZpAsNgTbZhGUjG2IXwM2Mh02EaI1M14l5Yy-jofxpZYRS4kzdRhsRn3WwN9X2swLUwsEg_L2f6jwQPEqkK6dVPKRbk6Q-1.jpeg?fit=1200%2C697&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPyWrx9QR2dBvTsN-0Bmgfo6jOqEkaZ8uZpAsNgTbZhGUjG2IXwM2Mh02EaI1M14l5Yy-jofxpZYRS4kzdRhsRn3WwN9X2swLUwsEg_L2f6jwQPEqkK6dVPKRbk6Q-1.jpeg?fit=1200%2C697&ssl=1&resize=525%2C300 1.5x, 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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":252921,"url":"https:\/\/climatescience.press\/?p=252921","url_meta":{"origin":390678,"position":5},"title":"Contracts for Difference Subsidies On The Rise Again","author":"uwe.roland.gross","date":"14\/04\/2023","format":false,"excerpt":"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\u2026","rel":"","context":"In \"offshore wind\"","block_context":{"text":"offshore wind","link":"https:\/\/climatescience.press\/?tag=offshore-wind"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0big-green.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0big-green.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/0big-green.webp?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/390678","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=390678"}],"version-history":[{"count":5,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/390678\/revisions"}],"predecessor-version":[{"id":390687,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/390678\/revisions\/390687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/390684"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=390678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=390678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=390678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}