2 ms·

> and decommissioning costs https://www.eia.gov/todayinenergy/detail.php?id=33792 https://www.eia.gov/todayinenergy/detail.php?id=33792 So perhaps 1B-2B USD a

> and decommissioning costs https://www.eia.gov/todayinenergy/detail.php?id=33792 https://www.eia.gov/todayinenergy/detail.php?id=33792 So perhaps 1B-2B USD a plant. 2,000,000,000/(60 * 1,600 * 365 * 24 * .9) = 2.6 USD/MWh > Off-shore wind is still scaling to become cheaper and cheaper. Why did the UK have to raise the maximum bid price for the Contract For Difference AR6? Wind farm costs have exploded, and turbine manufacturers are having reliability issues. https://www.reuters.com/business/energy/what-are-issues-with-siemens-gamesas-wind-turbines-2023-06-23/ https://www.reuters.com/business/energy/what-are-issues-with... https://www.reuters.com/business/energy/vineyard-wind-incident-was-not-first-time-ge-vernova-wind-turbine-came-apart-2024-07-18/ https://www.reuters.com/business/energy/vineyard-wind-incide...

blitzar 2y ago
> Why did the UK have to raise the maximum bid price for the Contract For Difference AR6? Bidders have to sell the government the electricity at the strike price. They pushed up the strike price to £54.23/MWh from a previous of £37.35/MWh with a current market price of £70-£80/MWh. Nobody was going to offer to sell electricity for £37.35 for the next 5 years in a market where you can currently sell it for £70 - £100 (and where you could sell it for £300-£500 when the crisis occurred in 2021 / 2022).
- chickenbig 2y ago
  > Nobody was going to offer to sell electricity for £37.35 for the next 5 years in a market where you can currently sell it for £70 - £100 The beauty of the CfD scheme is that you can choose when to start using it. But once you're in you're in, you're in until the end of the 15 years. https://www.current-news.co.uk/significant-commercial-incentive-for-offshore-wind-farms-to-delay-cfd-activation/#:~:text=However%2C%20some%20offshore%20wind%20generators,additional%20revenue%20to%20the%20LCCC https://www.current-news.co.uk/significant-commercial-incent.... In truth I think it will be a mug's game to build offshore wind without a CfD. See https://www.squeaky.energy/blog/the-unintended-consequences-of-negative-power-prices-in-the-uk https://www.squeaky.energy/blog/the-unintended-consequences-... for a view of what the day-ahead auction will turn into in a few years.

blitzar 2y ago

> Why did the UK have to raise the maximum bid price for the Contract For Difference AR6? Bidders have to sell the government the electricity at the strike price. They pushed up the strike price to £54.23/MWh from a previous of £37.35/MWh with a current market price of £70-£80/MWh. Nobody was going to offer to sell electricity for £37.35 for the next 5 years in a market where you can currently sell it for £70 - £100 (and where you could sell it for £300-£500 when the crisis occurred in 2021 / 2022).

chickenbig 2y ago
> Nobody was going to offer to sell electricity for £37.35 for the next 5 years in a market where you can currently sell it for £70 - £100 The beauty of the CfD scheme is that you can choose when to start using it. But once you're in you're in, you're in until the end of the 15 years. https://www.current-news.co.uk/significant-commercial-incentive-for-offshore-wind-farms-to-delay-cfd-activation/#:~:text=However%2C%20some%20offshore%20wind%20generators,additional%20revenue%20to%20the%20LCCC https://www.current-news.co.uk/significant-commercial-incent.... In truth I think it will be a mug's game to build offshore wind without a CfD. See https://www.squeaky.energy/blog/the-unintended-consequences-of-negative-power-prices-in-the-uk https://www.squeaky.energy/blog/the-unintended-consequences-... for a view of what the day-ahead auction will turn into in a few years.