EnergyWatch

National Auditor: New offshore farm scores billions from British blunder

Changes to the CfD auction model caused the price of last year's tender to rise EUR 1.7 billion higher than necessary for British consumers, says the British National Auditor. Signs now point clearly toward consolidation into a single project.

Photo: Innogy

There was much enthusiasm from the wind sector last year when the British CfD auction was announced in September, with three massive offshore farms awarded 3,196 MW of the total 3,346 MW tender. Politicians were also pleased, as  with the median price of GBP 65.1/MWh for the wind projects, subsidy costs were halved relative to the previous tender.

However, British consumers could have gotten even cheaper prices, concludes the British National Audit Office (NOA) in a new report. The report clarifies that imprudent changes to the CfD auction design occurred additional costs for around GBP 100 million per year – or GBP 1.5 billion over the 15-year subsidy period.

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