The results of the fourth round of the UK’s subsidy auction have been announced. They include 7GW of new offshore wind coming at a price of £37.35/MWh, 2.2GW of solar, almost 900MW of onshore wind and new tidal stream and floating offshore wind projects.
A full list of approved projects is available here. We note that there are projects in there for NextEnergy and Bluefield.
The strike prices for the offshore wind are considerably lower than the offshore wind farms approved in the last auction round and this may weigh on estimates of long term power prices. The £/MWh prices are in terms of 2012 prices and are then adjusted for inflation.
The strike prices represent guaranteed prices for energy for these projects. If actual power prices are higher than that, the excess goes back to the government.