By Paul Homewood
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https://dp.lowcarboncontracts.uk/dataset/actual-cfd-generation-and-avoided-ghg-emissions
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We regularly look at the cost of subsidies paid via the CfD scheme. I have not really analysed the cost per unit though.
As the above chart makes clear, the cost per MWh for all renewable generators under the scheme has been steadily rising since the inception of the scheme in 2016. The average so far this year stands at £151/MWh, which is well above the market price for most of the period:
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https://www.ofgem.gov.uk/energy-data-and-research/data-portal/wholesale-market-indicators
One of the reasons for the drop since last year is the return to the mix of biomass generators such as Drax, which were largely missing in 2023 because they could not make money. Drax, for instance, is guaranteed a price of £138/MWh.
The promised reduction in costs from offshore wind farms has so far had little effect on the overall cost of renewables.
