Wind Power: Subsidies

Department for Business, Energy and Industrial Strategy written question – answered on 8th October 2019.

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Photo of Lloyd Russell-Moyle Lloyd Russell-Moyle Labour/Co-operative, Brighton, Kemptown

To ask the Secretary of State for Business, Energy and Industrial Strategy, what the average subsidy payment per megawatt hour of energy produced was to (a) onshore and (b) offshore wind companies in each month since January 2017.

Photo of Kwasi Kwarteng Kwasi Kwarteng The Minister of State, Department for Business, Energy and Industrial Strategy

The average subsidy payment (1)(2)(3) to onshore and offshore wind companies per megawatt hour of electricity produced each month was:

Onshore wind (£/MWh)

Offshore wind (£/MWh)

Jan 2017

52.04

84.87

Feb 2017

51.76

84.93

Mar 2017

51.31

84.67

Apr 2017

52.26

87.71

May 2017

52.30

88.28

Jun 2017

52.26

88.63

Jul 2017

51.81

88.75

Aug 2017

52.07

89.72

Sep 2017

52.21

89.16

Oct 2017

51.92

89.93

Nov 2017

52.21

89.67

Dec 2017

51.64

88.87

Jan 2018

51.50

89.84

Feb 2018

51.47

89.43

Mar 2018

51.59

88.45

Apr 2018

52.79

93.45

May 2018

52.64

93.35

Jun 2018

53.79

93.37

Jul 2018

53.27

93.36

Aug 2018

52.51

92.97

Sep 2018

52.98

91.85

Oct 2018

52.56

92.10

Nov 2018

52.38

92.41

Dec 2018

52.38

92.11

Jan 2019

52.06

92.68

Feb 2019

51.93

95.10

Mar 2019

52.83

95.88

(1) Subsidies are the Renewables Obligation, Contracts for Difference (CfD), and Feed-in Tariff (FIT). The bulk of the above support is from the Renewables Obligation. Going forward, we expect the average subsidy payment figures to fall as more projects are supported under the competitive Contracts for Difference scheme*.

(2) Includes payments to domestic and community FIT schemes for onshore wind.

(3) Spend is in real terms.

For the Renewables Obligation, the full value of support is made up of a main payment and a much smaller subsidiary payment. As the value of the subsidiary payment is not yet known for any of the years, the above figures include only the main payment.

Data for April 2019 onwards are not yet available.

*The results of the third Contracts for Difference auction were announced on 20 September 2019. 12 new renewable electricity projects were awarded CfDs (6 offshore wind, 4 Remote Island Wind and two Advanced Conversion Technology projects), adding around 6GW of new clean electricity to the grid from 2023. The costs of offshore wind have come down by around two thirds since the first allocation round in 2015, with projects now being delivered for as little as £39.65/MWh. This is the first time that renewables are expected to come online below market prices.

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