Strike price changes both good and bad

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On 5 December the Government published updated Electricity Market Reform strike prices which reduce the support for onshore wind and solar PV from 2014 onwards, whilst increasing support for offshore wind from 2018.

The reductions for offshore wind and solar of £5/MWh take effect each year from 2014/15 – 2018/19. The increase of £5/MWh will not take effect until 2018/19. These changes to the previously published draft strike prices are as follows:

 

Draft strike prices (£/MWh)

   

2014/15

2015/16

2016/17

2017/18

2018/19

Onshore wind Previous

100

100

100

95

95

Current

95

95

95

90

90

Offshore wind Previous

155

155

150

140

135

Current

155

155

150

140

140

Solar PV Previous

125

125

120

115

110

Current

120

120

115

1010

100

Although these are the areas that received the most press coverage, there were also changes across other renewable technologies. Few remained unchanged. These are outlined here:

 

Draft strike prices (£/MWh)

   

2014/15

2015/16

2016/17

2017/18

2018/19

Advanced Conversion Technologies Previous

155

155

150

140

135

Current

155

155

150

140

140

Anaerobic Digestion Previous

145

145

145

140

135

Current

150

150

150

140

140

Biomass conversion Previous

105

105

105

105

105

Current

105

105

105

105

105

Dedicated Biomass (with CHP) Previous

120

120

120

120

120

Current

125

125

125

125

125

Energy from Waste (with CHP) Previous

90

90

90

90

90

Current

80

80

80

80

80

Geothermal Previous

125

120

120

120

120

Current

145

145

145

140

140

Hydro Previous

95

95

95

95

95

Current

100

100

100

100

100

Landfill Gas Previous

65

65

65

65

65

Current

55

55

55

55

55

Sewage Gas Previous

85

85

85

85

85

Current

75

75

75

75

75

Tidal Stream Previous

305

305

305

305

305

Current

305

305

305

305

305

Wave Previous

305

305

305

305

305

Current

305

305

305

305

305

The strike prices above are for projects commissioning in the year stated in the column. These are maximum strike prices. In the case that constrained allocation applies earlier, the actual strike price will be the outcome of the constrained allocation process if that is a lower value. While strike prices have been set out for 2014/15 to allow comparability, the EMR consultation on proposals for implementation discussed a start date for CfD payments of April 2015. The strike prices for Tidal Stream and Wave are intended for the first 30MW capacity of any project.

For more information, help or advice please contact Andrew Davison on 0191 211 7950.