I wanted to let you know that both Kirk Hill and Derril Water were awarded a CFD in the Government's latest auction today. The prices of the contracts are set out below. The auction results are given in 2012 prices so I have shown them in January 2024 prices too:
Kirk Hill - £50.90/MWh (£71.08/MWh / 7.1p/kWh in 2024 money)
Derril Water - £50.07/MWh (£69.92/MWh / 7.0p/kWh in 2024 money)
We will now review all available information, ahead of receiving the formal offer in a week or so.
Here is a video on how CFDs work that we made when we held the indicative vote on whether members wanted their share entered into the CFD auction (note - members voted to NOT have their share covered by a CFD) https://www.youtube.com/watch?v=qxYNWqvukZU&t=359s
The CFDs would therefore not apply to the proportions of the power supplied to coop members, only the proportions funded by the finance facilities. As a result they would not impact the savings to members in the short-medium term.
In the longer term they could mean the finance facilities can be repaid a little bit earlier. This would mean members get enhanced savings (from the share funded by the coop plus the share funded by the finance facility) a little bit sooner.
You can see the full results of the auction here: https://assets.publishing.service.gov.uk/media/66d6ad7c6eb664e57141db4b/Contracts_for_Difference_Allocation_Round_6_results.pdf
Summary of CFDs awarded:
Solar - 3.3GW
Onshore wind - 1GW
Offshore wind - 3.8GW (plus 1.6GW rebid from earlier CFDs)
The new Government increased the budget for the auctions earlier in the summer. This will have led to more projects securing contracts, as well as increasing the contract prices.
The auction results are very good news for the UK's renewables sector!
(edited to correct video link)