CfD Strike Prices Announced
The UK Government has published Contract for Difference strike prices for renewable technologies under Electricity Market Reform and a summary of key contract terms.
Strike prices
In summary, the onshore wind band has received a £5 cut on the proposed draft strike price (now £95-90/MWh), with offshore wind receiving a £5 rise in 2018-19 to £140/MWh. Hydro receives a small rise on the proposals to £100/MWh, as does Biomass CHP to £125/MWh. Large scale solar PV has reduced by £5/MWh each year. Wave, tidal and island onshore wind remain at the previously proposed levels.
Contract terms
The government has also published an update on the key contract terms for the CfD, aimed at enabling developers to bring forward investment at lower cost to consumers. In particular the updated terms provide flexibility to reduce capacity, protection against unexpected events and protection against changing circumstances.
Delivery Plan
The EMR Delivery Plan, which will be published later this month, will include further detail on economic modelling underpinning the strike prices. In addition, the documents will be accompanied by a detailed explanation of the Government’s final policy positions on the contract terms. The Government will engage early in 2014 on allocation, including the approach and details of operation for the introduction of competition.
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