LOCATION/TYPE

NEWS HOME

[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]



Archive
RSS

Add NWW headlines to your site (click here)

Get weekly updates

WHAT TO DO
when your community is targeted

RSS

RSS feeds and more

Keep Wind Watch online and independent!

Donate via Paypal

Donate via Stripe

Selected Documents

All Documents

Research Links

Alerts

Press Releases

FAQs

Campaign Material

Photos & Graphics

Videos

Allied Groups

News Watch Home

Government has ‘underestimated subsidy cost’ of new wind farms by £80million a year 

Credit:  Written by David McPhee | 23/10/2017 | www.energyvoice.com ~~

A new report released by Aurora Energy Research has claimed that the UK Government has underestimated the amount of subsidy it will have to pay to UK wind farms by £80million per annum, including Moray East Wind Farm in northern Scotland.

The report claims that the methodology applied by the UK Government in order to forecast future subsidy payments ‘appears to underestimate the likely cost by almost 50% or £80million pa.’

The findings relate to the most recent round of Contract for Difference (CfD) funding in which the UK Government allocated contracts to 11 UK renewable projects, including Moray East Wind Farm in Morayshire and Grangemouth Renewable Energy Plant in east Stirlingshire.

According to the study, the flawed methodology also applies to 5.1GW of wind energy capacity secured in the first round of CfD funding applications.

The report states that unless the government alters its methodology it risks losing even more money on future renewable auctions.

The most recent auction allocated a CfD to Moray East Wind Farm at a second round price of £57.50 along with Hornsea Project 2 in England.

This critical report by Aurora Energy Research has states that the ‘capture price’ that offshore wind farms obtain is low in comparison to the wholesale price, entitled price cannibalisation, leaving an £80million shortfall.

A BEIS Spokesperson said: “The UK is a world leader in clean energy and our competitive approach to renewable electricity projects reduces costs for consumers and provides long-term certainty for electricity producers.

“The Contracts for Difference scheme is based on robust estimates and sophisticated modelling of future wholesale energy prices over the 15-year contract period. We regularly review these to ensure that we provide the best value for bill-payers.”

Source:  Written by David McPhee | 23/10/2017 | www.energyvoice.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
   Donate via Paypal
(via Paypal)
Donate via Stripe
(via Stripe)

Share:

e-mail X FB LI TG TG Share


News Watch Home

Get the Facts
CONTACT DONATE PRIVACY ABOUT SEARCH
© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.

 Follow:

Wind Watch on X Wind Watch on Facebook

Wind Watch on Linked In Wind Watch on Mastodon