Households will pay tens of millions of pounds more than necessary for electricity from a £2 billion offshore wind farm after the government gave the project’s developer a more generous contract than it asked for. The German energy group Innogy said yesterday that the contract awarded to it in September for the Triton Knoll scheme, off the Lincolnshire coast, gave it higher subsidies than were needed. The admission will revive scrutiny of the way the government funds green energy projects. Triton Knoll will generate up to 860MW and the contract says Innogy will receive £74.75 for every megawatt-hour (MWh) of electricity the wind farm generates for 15 years from its start date in 2021. That compares with wholesale prices of about £48/MWh, with the difference “topped up” via green levies on energy bills. At current prices, Triton Knoll would need subsidies of £100 million a year. Innogy did not say how much it bid. Under the bidding system, companies put in the lowest subsidy price they need for their proposal. All winning green energy projects that are due to start in the same year receive the same price as that of the highest bid.
Times 17th Jan 2018 read more »