Strike price changes both good and bad

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:

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:

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.