Figure C - Approximate Cost of ROC Funded Renewables 2024-25 (£ per MWh)Future renewables are also going to be more expensive than current market rates. The Government’s announcements of prices for their Allocation Rounds are often quoted in 2012 money. In 2024 money, Allocation Round 6 (AR6) is offering £102/MWh for fixed offshore wind, £246/MWh for floating offshore wind, £89/MWh for onshore and £85/MWh for solar power, all far higher than current market prices (see Figure D).Figure D - AR6 CfD Strike Prices Offered vs Recent Market Prices (£ per MWh)Figure D - AR6 CfD Strike Prices Offered vs Recent Market Prices (£ per MWh)It should be noted that FiTs, ROCs and CfDs are all index-linked, so prices will continue to rise with inflation. It is clear our bills are going to continue to rise for the foreseeable future as cheap gas is forced out in favour of expensive renewables. In addition, we pay extra for balancing the grid when the wind is not blowing (or blowing too hard) and the sun is not shining. In the year ending March 2024, these balancing services cost £2.46bn. Most of these costs should be attributed as a cost of intermittent renewables. That's a total of over £12bn being paid to or because of renewables each year. More costs are coming down the line as the National Grid ESO has announced £54bn of spending on the electricity network infrastructure up to 2030 and a further £58bn in the 2030-2035 period, a total of £112bn, or over £10bn per year for more than a decade. I hope it is clear to all now that renewables are not cheap and are never going to be.
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