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Key takeaway: UK renewables under CfD are no longer a marginal subsidy — they represent some of the most competitive generation options available, especially against new gas build and legacy nuclear.
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This disconnect between short-term market prices and long-run generation costs is exactly what CfDs are built to address — protecting generators and consumers from fossil fuel price volatility. https://t.co/YiVIXvwnsF
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For nuclear, historic CfDs like Hinkley Point C were around £92.50/MWh (in original prices) — and inflation-linked future prices are projected even higher (well above current wholesale costs). https://t.co/z1AKaloo5X
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Wholesale electricity prices currently average roughly £80/MWh-£90/MWh, meaning many CfD strike prices are competitive or above current market prices — but crucially represent long-term, predictable costs. @EnergyUKcomms https://t.co/EWTXfeZ3mv
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So even before market prices are factored in, renewables under CfDs in the UK are now cheaper on an LCOE basis than building new gas or nuclear plants — a huge shift vs a decade ago. @RenewableNI https://t.co/MLUpRfkS6X
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Compare that to other generation costs:
• New gas-fired plant LCOE in the UK ≈ £147/MWh — i.e., roughly 40% higher than the AR7 offshore wind strike. @GOVUK https://t.co/T9YVS8LI2H
🧵 THREAD: UK CfD results & what they mean — especially compared to gas + nuclear
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The UK just announced record renewable CfD auction results — including solar at £65.23/MWh and onshore wind around £72.24/MWh (2024 prices) in the latest Allocation Round. @Reuters https://t.co/8foHFZ1BuD
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The newest offshore wind CfDs (AR7) settled around £89–£91/MWh for fixed-bottom projects — a strong outcome in today’s conditions. @CarbonBrief https://t.co/lZn8A5UnuH
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For context, CfDs are guaranteed prices over years: if market prices are below the strike price, the government pays the difference; if above, generators pay back. It’s a way to stabilise investment risk. @GOVUK https://t.co/YE2fqA1E0h
These results show once again that clean power is the right choice, with new onshore wind and solar 50% cheaper than building and running new gas.
By backing renewables at scale, we’re lowering bills and taking back control of our energy security.
https://t.co/EbiBXCvSJw
@AlexEpstein By 2050 traffic is going to be electrified, power generation in going to be renewables only with BESS providing baseload, oil burners for heat will be long gone… I think NM will need to reassess ther business model!
@moik_mc@grok@WolfmannotJack@Kl_Stone Curtailment ist der Fachausdruck fuer Anlagenabschaltungen, welche vom Netzbetreiber aufgrund potentieller Netzueberlastung veranlasst werden.
Interessant waere zu wissen, ob die Curtailments reine Folge der gestiegenen EE oder auch die reduzierte Grundlast sind.
@moik_mc@grok@WolfmannotJack@Kl_Stone Ich stelle Fragen ohne Bewertung. Mehrere meiner Kollegen haben Bedenken ausgedrueckt durch die stark erhoehten Curtailments. Wo liegt das Probelm?
@WolfmannotJack@Kl_Stone@grok wie siehst du das? Kann man behaupten, dass Deutschalnd den fehlenden Atomstrom nun von Frankreich importiert? Merke auch an, was der Atomstoromstop mit der Netzsicherheit verursacht hat.