The UK Government has published draft strike prices for
renewable technologies. These are the prices that will apply to the
new subsidy regime under the Energy Bill, FiT CfDs (Feed in Tariffs
with Contracts for Difference).
The Government believes that the draft prices are broadly
comparable to the support levels available under the Renewables
Obligation. However, they also include adjustments to account for
the increased certainty generators have, from not bearing wholesale
price risk. This means that they offer a better deal to consumers
(the Government anticipates that this will deliver savings to
consumers of around £5 billion to 2030, relative to the
current regime).
Strike prices represent the "guaranteed" subsidy level
from renewables. Under FiT CfDs, the generator sells electricity in
the market in the normal way (through long-term contracts with
suppliers or by selling through electricity markets). The generator
then either receives or makes a payment
