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CfD Subsidies Rising Again, As Market Prices Fall

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By Paul Homewood

 

 

We have now got the full data in from the Low Carbon Contracts Company concerning CfD subsidies for 2023/24.

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

The above chart is for calendar year. Subsidies in the early years naturally were low as the system had only just started in 2016. Subsidies hit a record high in 2020, when market electricity prices had dropped through the floor because of lockdown induced low demand.

On a financial year basis, subsidies jumped to £2159 million in 2023/24, with average market prices of £82.53/MWh.

This year, market prices have fallen even further. Since January they have been averaging £57.45/MWh.

Bear in mind that the current Administrative Strike Prices for offshore, onshore and solar are £105, £92 and £87/MWh respectively.

So much for cheap renewables!.


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