Monday, September 11, 2017

CfD Wow!

The results of the 2021/22 and 2022/23 CfD auctions are out this morning and they show an amazing reduction in the strike price for new offshore wind projects.

Triton Knoll, a Round 2 project of 860 MW has a strike price of £74.75/MWh for 2021/22 start up, and the Round 3 projects of Hornsea 2 (1.4 GW) and Moray Firth East (1 GW) have both got strike prices of £57.70/MWh for 2022/23 start.

This is almost half the level in the first auction in 2015, and well below the level of strike price for the controversial Hinckley Point nuclear contracts.  These contracts are also shorter term, representing much better value for consumers.  The prices for offshore wind appear to be in free fall.

As seemed likely, there's no wave or tidal in the auction, as these technologies weren't allocated their own funding pot, and they really aren't ready to compete with offshore wind at this stage.

Monday, September 04, 2017

Tidal devices - performance review

Following the Scottish Renewables Marine Energy conference in Inverness, a couple of interesting performance metrics emerged.

Atlantis recently announced that the MeyGen project had generated 700 MWhr during August, apparently from 2 AndritzHydroHammerfest (AHH) turbines.  We thought it might be interesting to extract an average capacity factor from these figures.

2 turbines at 1.5 MW - 3 MW installed capacity.

Number of hours in August: 31 * 24 = 744

Total potential output = 744 hours * 3 MW = 2.232 GWhr

Actual output: 700 MWhr

Capacity factor: 0.7/2.232 = 31.4%

This may be a slight over-estimate, as the third AHH turbine may have made a minor contribution late in the month following its re-installation, but even with that proviso, these are not bad figures for a full month (i.e. neaps and springs).

ScotRenewables made a similar claim - that its 2.0 MW SR2000 had generated 116 MWh over week.  This equates to a capacity factor of 116/(24*2*7) = 34.5%, and we understand that this period was intermediate between spring and neap tide.

As runtimes extend and reliability improves, we hope to see these numbers go up too.