Gareth Miller’s Interview at Inspiratia Offshore Wind Conference 2019

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”.

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.
Announcement Low carbon generation

Related thinking

E-mobility and low carbon

Ending the ICE age: EV Country Attractiveness Index Findings

Over the past decade, electric vehicles (EVs) have become increasingly popular across many of the world’s major economies, with both the eco-conscious and average consumer adding to the rise in sales. This phenomenon has not just appeared from thin air, however, as international climate agreements, national net zero plans, EV...

Net zero corporates and ESG

Help us understand your business decarbonisation challenges

Are you a large business impacted by the challenge of increasing energy costs and decarbonisation targets? If the answer is yes, then we’d love your help to find out more about the challenges you are facing. We recently published an insight paper on the challenging economic climate that businesses are...

Low carbon generation

Understanding the evolution of the Irish electricity markets

The Irish electricity sector has undergone significant change in recent years. The Integrated Single Electricity Market (I-SEM) arrangements introduced in 2018 fundamentally transformed the market framework to maximise competition, facilitate electricity wholesale trading, and incentivise the development of low-carbon generation sources. In parallel the physical system continues to evolve rapidly....

Energy storage and flexibility

Waiting to connect: the problems and solutions for network connection queues (Part 2)

Network connection queues continue to be a notable topic of interest as many generators face significant delays to project development – an issue that is directly conflicting with net zero ambitions and recent focuses on strengthening domestic energy supplies. In Part 1 of our two-part series on connection queues we...

Energy storage and flexibility

Waiting to connect: the problems and solutions for network connection queues

The number of grid applications has risen significantly in recent years, resulting in increased pressure on the electricity networks to facilitate new connections. In its Energy Security Strategy, the UK government set out ambitions for 95% of electricity to be sourced from low carbon generation by 2030, and for the...

Net zero corporates and ESG

Long-term regulatory and policy changes needed to avoid stalls to business decarbonisation

In light of the financial pressures faced by businesses from rising inflation and interest rates, tight supply chains and labour markets, alongside high energy bills, there is a high chance corporate investment in decarbonisation could be in trouble. In Cornwall Insight's latest Insight paper “Business net zero: Making progress in...

Commercial and market outlook

Winter 2023-24 price cap forecasts fall further below 2022-23 EPG, but long-term prospects remain uncertain

The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. Our latest forecasts for the Default Tariff Cap (price cap) have shown energy bill predictions for a typical household1 have fallen to £3,208...

Energy Market Design

Are prices going to rise in Contracts for Difference Allocation Round 5?

A number of factors may be about to put an end to the trend for falling energy prices in the Contracts For Difference (CfD) scheme. The CfD scheme has provided strong subsidy support whilst also providing consumers robust levels of protection. High investor confidence and steady reductions in capital costs...