Wind farms paying back through the Contracts for Difference (CfD) scheme due to high power prices could now pay back £25 to each household from this October.
According to new analysis from the Energy and Climate Intelligence Unit (ECIU), the process for these payments reaching bills was previously unclear and the benefits delayed. But a change made by Ofgem in June means that CfD payments can now bring down household bills quicker, starting this October when the new price cap comes in.
Given this change and the continued high wholesale power prices, CfD projects are now predicted to pay back £25 this winter, and around £45 a year to each household from next winter. This is set to continue to grow as more low cost windfarms come online.
“This is a small but very welcome dividend from cheap renewable energy producers, where the prices are now miles cheaper than the spiralling costs of gas,” said John Penrose MP.
“The good news is that, as more giant offshore wind farms plug into the grid over the next few years, this bonus should grow.”
The price cap is now predicted to hit nearly £3,500 in October. According to the ECIU, this means that so called ‘green levies’ – which fund the CfD scheme – will drop to just 2% of the average dual fuel bill.
Read more: Current+
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