Our CEO, Gareth Miller, was interviewed at the Inspiratia Offshore Wind Conference 2019, where he discussed his thoughts on a range of issues affecting the market today.
Talking about his expectations on the contract for difference (CfD) allocation round three, Gareth said that Cornwall Insight Benchmark Power Curve models suggest that we are looking at a range between £47-£53 a MWh, with the auction “hugely dominated” by offshore wind with somewhere between 8-10GW of offshore capacity looking to come into this auction.
On the future of the CfD auction, Gareth commented that “we could see some changes” post allocation round three. These reforms are likely to try and introduce more exposure to wholesale power prices so CfD generators will act and behave in the market like other generators.
However, Gareth explained that the government will try and manage this process sensitively and are “unlikely to make radical changes” due to the significant investment in the sector over the next ten years. GB will need to increase the amount of capacity required to meet the net zero, but any changes are likely to be “evolutionary and steady rather than sudden and revolutionary”.