At last week’s Budget, Chancellor John Healey said that the Government’s priority was “first and foremost cheaper energy”.
He went on to say that new offshore wind projects would need to demonstrate that they would lower bills in order to be approved.
He said: “There’s no sense building power that can’t connect and then paying to switch it off. We will take that approach into our next renewables auction, only buying projects that can lower bills while strengthening our energy security.”
The Contracts for Difference (CfD) scheme sees generators agree a ‘strike price’ for each unit of energy.
If the wholesale price is above this amount, the generator pays back the difference.
If it is below, the generator receives a subsidy to make up the shortfall.
