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offshore-wind-farms-in-german-tender pay e800m

Posted: Mon Aug 14, 2023 7:55 am
by Ken
https://reneweconomy.com.au/companies-p ... an-tender/

No stopping offshore wind and RE. How profitable must onshore be now?

Re: offshore-wind-farms-in-german-tender pay e800m

Posted: Mon Aug 14, 2023 9:00 am
by Swwils
Depends how you calculate profit

Re: offshore-wind-farms-in-german-tender pay e800m

Posted: Mon Aug 14, 2023 11:09 am
by Mart
Ken wrote: Mon Aug 14, 2023 7:55 am https://reneweconomy.com.au/companies-p ... an-tender/

No stopping offshore wind and RE. How profitable must onshore be now?
Hiya Ken. It's so good to see some positive news at the moment, as the high inflationary rates (since the invasion of Ukraine), especially on construction and transport have hit RE, and it seems from the news, especially off-shore wind, hard. I think there have been calls for the UK to taske this into account for the next CfD auction.

Just a thought, that someone may know - I believe that Germany (and other European countries) don't include the cost of the infrastructure buildout/expansion for these schemes, in the cost. So German bid prices, and licensing fees, can look better than the UK, as we include those costs in the CfD, so it needs to be a bit higher. If I'm right, then Germany pays those costs more centrally, rather than project specific. It doesn't change the total investment/cost, but can distort comparisons of CfD / auction bids.

Re: offshore-wind-farms-in-german-tender pay e800m

Posted: Mon Aug 14, 2023 12:48 pm
by Ken
yes Mart thats true

greenallianceblog.org.uk
What will Brexit mean for the UK’s trade in electricity with Europe?
This post is by Jonathan Bosch, research postgraduate at the Grantham Institute, Imperial College London. The internal electricity market (IEM) is one of the major achievements of the European sing…
greenallianceblog.org.uk greenallianceblog.org.uk

"A second challenge is that interconnectors may make UK suppliers uncompetitive because of their free transmission of electricity. All utilities in the UK pay transmission charges, and offshore wind projects situated far away from the national grid are disadvantaged as they need to raise large finance to build transmission lines. But imported electricity is exempted from such charges. Generation capacity built in the UK may, therefore, begin its life on an uneven playing field if the costs of transmission are higher than those of European generators. Imported electricity is also exempted from the £18/tCO2 carbon price floor that has been successful in decarbonising Britain’s electricity.