Analysis of Global Power Market
Analysis of Global Power Market
Wind Power Subsidy and Price Scheme in the UK (1/2)
Feed-in Tariffs (FIT)
Applicable
Project
and Date
Wind power(<5MW)
1st Apr 2010 - present
Scheme
FiT generators get fixed tariff payments
for electricity generated and connected
to the National Grid
• For wind electricity generated
payments
=
tariff *total power generated
Total Installed
•
Tariff
Capacity (kW)
(p/kWh)
0-50
8.24
50-100
4.87
•
100-1500
1.55
•
1500-5000
0.47
(valid from 1st Jan 2019 to 31st Mar 2019)
• For electricity exported to the grid
payments: = tariff * total power exported
Applicable project
Non-solar PV
Tariff(p/kWh)
5.38
Renewables Obligation(RO)
New application closed for onshore wind
on 12th May 2016 and for all new
generating capacity on 31st Mar 2017
Started in 2002 in England, Wales and
Scotland, 2005 in Northern Ireland
Electricity generation accredited under
the RO will receive support for 20 years
The level of the annual obligation on
electricity suppliers is published ahead
Eligible renewable electricity generators
report the amount of renewable
electricity they generate
Ofgem issues Renewables Obligation
Certificates (ROCs) to generators
relating to the amount of eligible
renewable electricity they generate
Generators sell ROCs to suppliers
Suppliers who do not present enough
ROCS pay a penalty
Ofgem collects the money in the buy-out
and re-distributed on a pro-rata basis to
suppliers who presented ROCs
The number of ROCS electricity
suppliers are required to produce
during 2019/2020 obligation period
(ROCS/MWh)
Great Britain
Contract of Difference (CfD)
Onshore wind (first allocation round)
Offshore wind (second allocation round)
Started in 2014
-1st allocation round in 2014/2015
-2nd allocation round in 2017
-3rd allocation round in 2019*
Generators sell energy into the market
through usual commercial channels
When market price>strike price,
generators pay back the difference
When market price<strike price,
generators receive the difference
The strike price shows a declining trend
from 2018 to 2022.
1st Round Result - Onshore Wind
Strike Price(£/MWh)
79.23
82.50
Delivery Year
2016/2017
2018/2019
2nd Round Result - Offshore Wind
Strike Price(£/MWh)
74.75
57.50
Delivery Year
2021/2022
2022/2023
3rd Round Result Offshore Wind
Strike Price(£/MWh)
0.484
39.65
41.611
Delivery Year
2023/2024
2024/2025
(valid from 1st Dec 2012 to present)
Northern Ireland
0.190
The third CfD allocation round, for offshore wind farms of no greater than 1.5 GW of capacity, concluded in September 2019,
with a strike price of £39.65/MWh and £41.611/MWh for the delivery year of 2023/2024 and 2024/2025 respectively.
FROST
Source: Government Documents, Frost & Sullivan
SULLIVAN
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