Government to pay more for wind-generated energy

The government has increased the maximum price to companies for electricity generated by new wind farms.

This comes when the minister is trying to fulfill challenging pledge to bring down domestic bills and create an electric grid that it is almost completely free from fossil fuels by 2030.

The Energy Safety Department and NET Ziro published the details before the latest auction for government -backed contracts.

The auction opens in August and it will be one of the last that can distribute timely projects to meet the government’s clean power target by 2030.

Orthodoxies have described new prices for offshore air as “water from eyes”.

The government said that prices will not be what is eventually paid, as companies will put in less bids to win the contract.

A spokesman from Energy Secretary Ed Milliband said, “The auction has revealed the actual price, as it was done last year, where the auction prices were significantly reduced”.

Each year, companies that want to build renewable energy projects bid for government -backed contracts.

The government agrees to pay them a certain price for electricity produced for a fixed period, now up to 20 years, and up to maximum price to the administrative strike price, or as ASP.

To win the project contract, the firm in the bids below the ASP put the firm and then the government determines a new guaranteed value, known as the clearing value, is based on them.

This year, the maximum guarantee value for offshore air will be £ 102 in 2024, £ 113 per megawatt.

Floating offshore wind, which is a new technology, is more expensive from £ 245 to £ 271/MWH.

Onshore Pawan has seen a short growth from £ 89/mwh to £ 92, while solar energy has come from £ 85/mwh to £ 75/mwh.

Conservative Shadow Energy Secretary Claire Costinho said: “These are water prices – the highest and above the average cost of electricity in a decade and last year. And it is before the hidden cost of grid, storage and ruined air that ends on our energy bills.

He claimed that Ed Milliband was “putting the cost of or living over the economy or the cost of life”.

The government argues that by switching to renewable items, consumers will protect consumers from unstable gas prices and the bill will be “brought down for good.”

Johnny Gowdy, from Not-For-Profit Group Regen, who recommends infection in NET Zero, said that the ASP “was about determining the initial point for auction; with competitive bids we would expect the real auction strike price to be very low”

“There is also a trade band between the volume and the price. If the bid prices are high then the government will purchase low capacity. If the price is low then the government will be able to buy more capacity.”

He says that the cost of producing offshore air has “probably increased in the last few years” but said “we have to wait and see the result of the auction” to find out how much is known to find out “.

As a result of the previous auction, there is a clearing value less than the maximum offering.

The maximum price is the risk of setting very low.

In 2023, under conservatives, No offshore wind developers bid for any project As he said, he was not viable at the cost of the offer.

The government has changed the system in the hope of attracting more dialects to create competition.

For the first time this year, the offshore wind projects that do not yet have a complete plan will be able to apply for the contract.

The length of the contract has also been extended from 15 years to 20 for air and solar projects and the Energy Secretaries will be able to look at the dialectper’s dialects before setting the final overall budget.

A Desanz spokesperson stated that its improvement in the system will “enable a competitive auction that protects the best possible value for consumers, while we need to remove fossil fuel rollercosters to achieve clean energy.”