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CfD Subsidies Hit Record High In 2024

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By Paul Homewood

 

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https://dp.lowcarboncontracts.uk/dataset/actual-cfd-generation-and-avoided-ghg-emissions

CfD subsidies hit a record high of £2362 million last year, beating the previous record set in 2020, when market electricity prices were exceptionally low because of lockdowns. The LCCC data runs up to Dec 22nd, so the final figure for 2024 will be slightly higher still.

Subsidies covered 30.2 TWh of generation, at an average of £78/MWh. In other words renewable schemes covered by CfD were paid about double the market price in overall terms.

Wind power accounted for £1970 million of the overall subsidy, with biomass adding a further £299 million.

Total subsidies for wind power tot up to  £9.1 billion since the CfD scheme started in 2016, with biomass costing another £2.5 billion.

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Meanwhile subsidies for wind power via the Renewable Obligation Scheme cost a further £4.6 billion in the year ended March 2024.

In short, wind power is now being subsidised to the tune of about £7 billion a year, when constraint payments are included.


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