News

UK setting ceiling strike price for geothermal at GBP 140/ MWh

Pernzance, Cornwall, UK (source: flickr/ The Brit_2, creative commons)
Alexander Richter 13 Mar 2017

The British government has set a ceiling strike price for geothermal at GBP 140/ MWh in an upcoming auction. The price is a guaranteed minimum under subsidy contracts for less-established renewable energy technologies.

Reported today, the government in the UK has announced the setting of a ceiling strike price for geothermal projects in an upcoming auction.

The subsidy contracts offered under the scheme are to “guarantee the owners and operators of renewable energy projects a top-up payment if the wholesale price falls below the agreed strike price.”

Set for the time periods of 2021-22 and 2022-23, the auction for the subsidy contracts is set for less-established renewable energy technologies. It will take place April 3 with an allocation of GBP 290 million ($353 million) a year in contracts.

The ceiling strike price set for geothermal projects will start at GBP 140/ MWh ($170/ MWh or  $0.17/ kWh).

The strike price set for offshore wind farms will start at GBP 105/ MWh.

Here a descriptive UK government document  and “Government’s response to the Call for Evidence on Fuelled and Geothermal Technologies in the CFD, relating to geothermal only. It indicates the level of the Administrative Strike Price which the Government has decided to set for geothermal (with or without CHP) for the Second CFD Allocation Round opening in April 2017.” The document can be found here (pdf).

Source: Times of India