Chart of the week | To 6 GW… and beyond! Offshore wind in the CfD scheme

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.

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Low carbon generation

CfD Allocation Round 4: how much capacity might we expect?

On 13 September, BEIS published the draft budget notice and draft Allocation Framework for Allocation Round 4 (AR4) of the Contracts for Difference (CfD) scheme, scheduled to open in December 2021. BEIS set out a total draft budget of £265mn (in 2011-12 money) for AR4, meaning that total spend in...

Low carbon generation

The outlook for private wire business models

Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...

Energy storage and flexibility

Chart of the week | We built this city… on existing generation

The Capacity Market (CM), introduced under the Electricity Market Reform (EMR) policy programme is designed to ensure security of electricity supply in GB. This is done by providing payments – determined through a competitive auction– to generators and eligible demand side response (DSR) and can encourage existing plant to remain...

Low carbon generation

Chart of the week | What might compete in upcoming Capacity Market auctions?

The next round of Capacity Market (CM) auctions are set to take place in March 2021, starting with the T-1 (Delivery Year 2021-22) on 2 March followed by the T-4 (Delivery Year 2024-25) on 9 March. The prequalification window for these auctions have been open since 20 July 2020 and...

Energy storage and flexibility

Chart of the week | Cha-Cha Slide: COVID-19 & falling levels of inertia

The level of inertia on the system is a key contributor to electricity system stability. Inertia is an attribute of the system related to the energy stored in the rotating motors of synchronous generators. It prevents system frequency from falling too quickly after a frequency disturbance (e.g. a generator trip)....

Low carbon generation

Chart of the week | The pipeline for CfD AR4: Who, where, when?

‘Pot 1’ technologies may be reinstated in the next Contracts for Difference Allocation Round 4 in 2021. This Chart of the week looks at the pipeline of renewables projects which are most likely to enter the auction.

Low carbon generation

Pixie Chart of the week | Germany demonstrates benefit of auction system

Germany regularly runs auctions to subsidise renewable generation capacity. In 2020, it plans to run 20 auctions – seven solar, seven onshore wind, three biomass and three mixed wind and solar – as well as six for CHP engines, seeking nearly 7GW of capacity in total. The auctions set a...

Low carbon generation

Chart of the week | En-Route to market in 2020?

Published on the 14 January was the latest update of Renewable Energy Planning Database (REPD). In summary, it provided an overview of current and planned green energy projects across Great Britain and Northern Ireland. In this week’s Chart of the week, we look at the government’s Renewable Energy Planning Database. It discusses...