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Offshore Wind Farms Still Being Subsidised Under CfD, Despite Higher Market Prices

June 23, 2022

By Paul Homewood

 

 

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https://eciu.net/media/press-releases/2022/cheap-wind-to-pay-back-26bn-in-future-gas-crisis

The renewable lobby were quick to tell us when CfD contracts started briefly to repay money to consumers, when power prices peaked at the end of last year. But they are silent now that very short period has ended.

Since the beginning of April, as wholesale power prices have eased, the negative subsidies have disappeared, and energy consumers are once  again paying subsidies to renewable generators, notably offshore wind farms.

From  1st April to 13th June, the total cost of subsidies under Contracts for Difference have cost consumers £57 million. True, this is considerably less than historically, but consumers are also, of course, instead paying much more because of high market prices – it’s a case of being burnt or scalded! Either way, the consumer pays through the nose.

In any event, these amounts are dwarfed by the main subsidy scheme for renewables, Renewable Obligations, which will cost us all £6.6 billion this year.

But you won’t hear that from the green billionaire funded ECIU!

14 Comments
  1. June 23, 2022 12:36 pm

    How can the ECIU have the bare-faced cheek to say “The UK’s investment in renewables … are lowering electricity costs” when we’re in the middle of a renewables-caused energy (high & rising cost) crisis???

    • Hugh Sharman permalink
      June 24, 2022 7:37 am

      @Ilma630, Ummm…the mass murdering gangster in the Kremlin, (young Russians as well as thousands of completely innocent Ukrainians) and Britain’s worthless Boris are still making their notable contribution to today’s inflation! But yes, of course, the https://eciu.net/ is pretty loathsome!

  2. Joe Public permalink
    June 23, 2022 12:43 pm

    If only the BBC has a competent Energy Analyst to report inconvenient facts.

    • It doesn't add up... permalink
      June 24, 2022 9:41 am

      I gather the incompetent one retires next week. We should celebrate. Perhaps a greatest lies show?

      • Ray Sanders permalink
        June 24, 2022 12:56 pm

        As an aside, I have noticed Gridwatch has added the Elec Link onto the downloadable figures. Since its connection it has only run on import to the UK for testing. It is now in continuous export mode.

  3. June 23, 2022 1:08 pm

    Being competent is a disqualification for any BBC analyst

  4. cookers52 permalink
    June 23, 2022 2:43 pm

    But we are all doomed, Greta said so.

  5. Rowland P permalink
    June 23, 2022 5:51 pm

    As Jeremy Clarkson recently said: “You’ve no chance getting a job with the BBC these days if you have a sc****m!”

  6. Coeur de Lion permalink
    June 23, 2022 9:41 pm

    Article in The Times today about the BBC’s long record of transparent impartiality with a very small number of taxpayers disagreeing.

    • June 24, 2022 10:05 am

      The Times needs to understand that objective impartiality is not a vote, it only needs one objection upheld to demonstrate bias (and how many has Rowlett had upheld against him recently?).

  7. Coeur de Lion permalink
    June 23, 2022 9:44 pm

    Btw wind electricity continues at 6% of low demand as I write
    .

  8. It doesn't add up... permalink
    June 24, 2022 2:42 pm

    A reminder of the reality of the true cost of CFDs:

    • Mikehig permalink
      June 24, 2022 5:04 pm

      Idau: that’s a killer graph!
      Mind if I ask the source?

      • It doesn't add up... permalink
        June 24, 2022 6:51 pm

        The data come from the Low Carbon Contracts Company as analysed by me to calculate production weighted averages for each grouping and month, with the market prices being the average of day ahead prices for the UK from Nordpool (which will be very close to the average Intermittent Market Reference Prices, used to calculate CFD payouts, because they are a key input to them).

        It’s one of the charts I will be submitting the the BEIS Select Committee on the silly plan to try to go to a net zero grid by 2035.

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