Response to results of latest Contracts for Difference auction
Responding to the announcement today (11 September 2017) of the results of the latest Contracts for Difference auction Professor Sam Fankhauser, Director of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science and a former member of the UK Committee on Climate Change, said:
“These results show a significant reduction in the strike price for offshore wind and illustrates how this auction process drives down the price of electricity from renewable energy. With the Treasury currently looking for alternatives to capping the subsidy for renewables through the Levy Control Framework, it demonstrates that the auction of ‘Contracts for Difference’ is an effective way of controlling costs. It also indicates that offshore wind may soon no longer require subsidies to help it overcome the market failures that currently prevent it from competing on a level playing field with fossil fuels.”
NOTES FOR EDITORS
- The Grantham Research Institute on Climate Change and the Environment (https://www.lse.ac.uk/grantham) was launched at the London School of Economics and Political Science in October 2008. It is funded by The Grantham Foundation for the Protection of the Environment (https://www.granthamfoundation.org/).