The British government last year guaranteed Norfolk Boreas inflation-linked prices over a 15-year period, starting at £37.35 per megawatt hour at 2012 prices.
If you look at UK wholesale prices, this was obviously far too low.
Developers have already said the maximum price of £44/MWh in 2012 prices is too low.
Its aim was to protect wind farm operators and UK customers from market fluctuations and give the operators guaranteed returns and customers guaranteed prices.
The operators were protected from a price collapse, the customers from a price boom.
They too may be tempted to bid at the CfD rate of £44/MWh in 2012 prices and then not trigger the CfD. But I suspect the underlying problem is that wind is not an economically viable technology for generation at grid scale at current prices, and that costs are not coming down, but are rising.
I suspect costs have risen enough that no-one can prudently count on making a return from wind at these prices.
https://wattsupwiththat.com/2023/07/21/big-blow-to-uks-green-dreams-as-costs-skyrocket/
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