Rule changes to the 2017 Contract for Difference (CfD) auction will cost UK consumers an additional £1.5bn over 15 years, according to a new report. A study of CfD2 by the National Audit Office’s found the decision by BEIS to introduce a 150MW cap for dedicated biomass with combined heat and power, anaerobic digestion and advanced conversion technology will increase bills by £100m per year. Under the revised auction rules, smaller but more expensive-per-unit projects covered by the capacity cap were awarded CfDs, which increased the price of cheaper-per-unit projects such as offshore wind not covered by the cap. “Almost all of this cost increase is due to small projects pulling up strike prices for projects that had already been accepted, rather than due to additional capacity being secured,” the report said.
Renews 16th May 2018 read more »
Business Green 16th May 2018 read more »