DECC Releases CfD Budget Draft

UK Department of Energy and Climate Change has released a draft version of the Contracts for Difference (CfD) budget notice that the Secretary of State will give to the EMR Delivery Body, National Grid, ahead of the first allocation round in October 2014.

The department divided the first allocation round in two pots. The first pot, consisting of established technologies like onshore wind and solar, will be granted GBP 50 million for the project commissioning from 2015/16 onwards.

The second pot comprises technologies such as offshore wind, wave and tidal stream which are less established. They will be granted GBP 155 million for the project commissioning from 2016/17 onwards.

The administrative strike price for tidal and wave energy will be 305 £/MWh for the period of next 5 years.

Offshore wind price will be reduced from 155 £/MWh to 140 £/MWh over the same period.

According to the draft, all prices have been calculated in real terms on the basis of a £2011/12 price level.