UK 'may fall short' of 10GW offshore

The UK's London Array

The UK's London Array

Investment returns for UK offshore wind farms will be “marginally superior” under the incoming support regime, but may not be enough to deliver 10GW of capacity by 2020, according to analyst Bloomberg New Energy Finance.

Earlier this month the Department of Energy and Climate change issued an updated proposal for the subsidy levels under the impending Contracts for Difference (CfD) support scheme.

The most important change was a £5/MWh increase for offshore wind farms in 2018/19, with the difference made up for clawing back support in the nearer term for onshore wind and PV.

Aside from the increase, the CfD scheme has some advantages over the existing Renewables Obligation scheme, which will be phased out in 2017, BNEF says.

Equity returns for projects commissioned between 2014-2018 will come in around 8%-12% under the CfD, which Log in to read complete article.

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