Offshore Wind Subsidies On Course To Hit £5bn This Year

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By Paul Homewood

Latest data shows that offshore wind is once again being paid massive amounts in subsidies, as the market price of electricity gradually sinks back nearer to historic rates.

According to the Low Carbon Contracts Company, subsidies to offshore wind farms under CfDs amounted to £419 million between April and July this year, equivalent to £96/MWh. The market price averaged £81/MWh during the same period.

Older offshore wind farms, which are subsidised via ROCs, are paid a subsidy of £125/MWh at current rates.

Last year offshore wind generated 45 TWh, split 22.1 TWh for ROC generators and 22.9 TWh for CfD ones. On this basis and at current levels of subsidies, the total subsidy for offshore wind will amount to over £4.9 billion in this year as a whole. That works out at about £200 per household.

Remember that next time when people tell you how cheap wind power is!