The role of Contracts for Difference (CfD) generators in the electricity market continues to expand and Allocation Round 4 (AR4) to be held later in 2021 will expand this role further. By the end of 2020, installed generating capacity supported by the CfD scheme already totalled 5.2GW, providing Great Britain with 22.0TWh of renewable generation. As further projects come online under AR2 and AR3, this Chart of the Week explores those assets scheduled to come online under the scheme in 2021 and their impacts on the wider wholesale electricity market.
To keep reading, please log in to your account
Related thinking
Low carbon generation
“If I don’t get some shelter, ooh yeah, I’m gonna fade away”: How much firming is needed for wind?
In the last week, renewable generation in SA has varied from 126% of local demand to only 0.6%. During this period of low wind in the state, SA was importing ~600MW from Victoria. At that same time, renewables were thankfully generating 34% in VIC, along with brown coal pretty much...
Energy storage and flexibility
Out with the old, in with the new: T-4 Capacity Market clears at record price
On 21 February, the T-4 Capacity Market auction for Delivery Year 2026-27 cleared at a record high price of £63.00/kW/year, procuring 43,000.955MW of capacity. In this week’s 'Chart of the week', we explore the key takeaways from the auction.
Business supply and services
The first month of the EGL against a backdrop of falling wholesale prices
The end of January means the end of the first month of the Electricity Generator Levy (EGL). First announced as part of the Autumn 2022 budget, the EGL places a 45% tax on generation receipts above £75/MWh for non-Contracts for Difference (CfD) renewable and nuclear generators until March 2028. In...
Energy storage and flexibility
Record renewables pipeline: will investors reconsider after UK proposes green revenue cap?
News this week that the UK government is mulling over a cap on green generation revenues comes at a time when our research finds that the investment pipeline for electricity renewables generation is the highest it has ever been. In our Renewables Pipeline Tracker (RPT) service we analyse the growing...
Commercial and market outlook
Moving with the times: How trading strategies in the NEM changed in a year
Inherent in an electricity market like the NEM is its ever-changing landscape. Contributors to these changes may be government-driven policies, evolving market dynamics caused by external factors like a global pandemic, a worldwide rise in fuel prices, and even changes in the market structure itself. As cliché as it may...
Low carbon generation
Head to Head: CfD vs RESS
2022 has been busy for renewable developers in Great Britain and Ireland, with both the fourth allocation round of the Contracts for Difference (CfD) scheme and the second round of the Renewable Electricity Support Scheme (RESS) concluding this summer. In this week’s ‘Chart of the Week’, we compared the latest...
Low carbon generation
BEIS confirm end-date for recognition of EU GoO imports
In this week’s ‘Chart of the Week’, we examine the historical volume of GoOs imported for FMD and explores what impact GoO removal will have on the REGO market.
Commercial and market outlook
Recent events push NEM turnover to new heights
The story of recent times in the NEM has been the significant escalation of wholesale price outcomes in the market. As discussed repeatedly, elevated fuel costs for gas and supply constraints in the market have sent NEM turnover to uncharted territory. By NEM turnover, we refer to the total costs...
