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Solar PV gets lowest strike prices in UK's CfD auction

Solar panels. Featured Image: Martin D. Vonka/Shutterstock.com

February 26 (SeeNews) - Тhe clearing price for two of the winning solar photovoltaic (PV) projects in the UK’s first Contract for Difference (CfD) auction came near the market price for electricity and was notably below the average rate for onshore wind.

Hadstone Energy's 19.1-MW Wick Farm solar project and the 13.78-MW Roston solar scheme will sign CfDs at a strike price of GBP 50.0 (USD 77.7/EUR 68.3) per MWh. Both will be completed in the 2015-16 period. The other three successful projects, with a combined capacity of 38.7 MW, got a strike price of GBP 79.23/MWh.

The CfD auction achieved lower prices for solar power, than for onshore wind, which was regarded as the cheaper of the two technologies up to now. Most onshore wind parks got a strike price of GBP 82.5/MWh and two received GBP 79.99/MWh. Only the Brenig wind farm will sign a CfD for GBP 79.23 per MWh.  

The Department of Energy & Climate Change (DECC) calculates that the clearing price for solar power projects in the auction was up to 58% lower than the price without competition. “The auction has driven down prices and secured the best possible deal for this new clean, green energy,” commented Energy & Climate Change Secretary Ed Davey said.

At the end of January 2015, the UK had 5,143 MW of installed solar PV, according to the latest DECC stats. Last month, only 48 MW of capacity came online.

(GBP 1 = USD 1.553/EUR 1.366)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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