By Paul Homewood
https://dp.lowcarboncontracts.uk/dataset/actual-cfd-generation-and-avoided-ghg-emissions
.
The cost of subsidies paid out under the Contracts for Difference scheme have rapidly risen so far this year, on the back of lower market prices and extra wind power generation.
Subsidies were notably high during the lockdowns of 2020 and 2021, when market prices fell through the floor.
The market price during April and may this year fell to £56/MWh, and is now close to 2019 levels, having stabilised following the price shocks brought by the Ukraine war.
On current trends, we can expect the total subsidy for this year to exceed £3 billion.
.
It is worth recalling that the Administrative Strike Prices in force for this year’s CfD auction are at 2023 prices:
.
Offshore Wind: £100.66/MWh
Onshore Wind: £88.26/MWh
Solar Power: £84.12/MWh