4 ms·
Also cheers to the mod who updated the title - I didn't want to editorialise it myself - though not sure if either the original or new encapsulates what is on o
by ljf 9y ago
Also cheers to the mod who updated the title - I didn't want to editorialise it myself - though not sure if either the original or new encapsulates what is on offer here:
"the “exceptionally low” results of a government auction on Monday for subsidy contracts show two offshore windfarms will be built for £57.50 per MWh, way below even the most extreme predictions. The price is half of what new offshore windfarms were being awarded just two years ago."
This is really something considering where the figures came in 5 or 10 years ago, and amazing to compare against the number from 2015:
Estimated UK LCE for projects starting in 2015, £/MWh
Power generating technology (Lowest 2015 figures in £)
Nuclear PWR (Pressurized Water Reactor)(a) 82
Solar Large-scale PV (Photovoltaic) 71
Wind
Onshore 47
Offshore 90
Biomass 85
Natural Gas Combined Cycle Gas Turbine 65
CCGT with CCS (Carbon capture and storage) 102
Open-Cycle Gas Turbine 157
Coal Advanced Supercritical Coal with Oxy-comb. CCS 124
IGCC (Integrated Gasification Combined Cycle) with CCS 137
(a) new nuclear power: guaranteed strike price of £92.50/MWh for Hinkley Point C in 2023[49][50])
(from: https://en.wikipedia.org/wiki/Cost_of_electricity_by_source https://en.wikipedia.org/wiki/Cost_of_electricity_by_source )
Also love this line towards the end of the article:
"The lower the price, the more electricity generating capacity can be built. The government had allocated £240m-a-year for the subsidies but the competitive prices mean it now expects them to hit £176m-a-year at most."
- raverbashing 9y agoGreat summary. Still, it's not clear where the subsidies are getting paid to those wind farms Are they paying more for generation than the consumer is paying for electricity?
- kieranmaine 9y agoGood summary here on strike prices. It talks about nuclear power, but it applies to wind as well - http://www.bbc.co.uk/news/business-22772441 http://www.bbc.co.uk/news/business-22772441
- olau 9y agoSide note: From a Danish point of view, the price level for offshore wind you've been agreeing to in the UK has seemed... very high. Of course, location etc. is different, but still. There was a single offshore wind farm in Denmark in the high price range, where a government that had previously decided man-made warming was a hoax suddenly reversed their direction and decided it needed the farm built quickly, ending up with a single bidder. But in any case this has finally ended. FYI: Not long ago, DONG won a bid on a subsidy-free offshore farm in Germany. IIRC, they have until 2020 to decide whether they're going to build it or not, but they'll have to pay a fee if they don't.