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.
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Redfield Consulting has been providing strategic, commercial and economic support to companies in the renewables and carbon capture sectors since 2001.
About Me
- John Aldersey-Williams
- After 20 years in oil, John Aldersey-Williams set up Redfield Consulting to help companies in the renewables and carbon capture sectors.
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