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Absolutely - I can see a new major change in policy - we are too reliant with importing energy now that the energy supply from France is severely reduced due to fire damage leading to soaring energy prices. All we need is the government to invest in tidal energy to go with wind power - sorted!! Uskmouth could get the go ahead using subcoal. This could be the start of a long sustained recovery for SAE.
Government could stop pouring money into wind turbines and give a bigger proportion to tidal projects.
Find it so odd.
Energy prices soaring.
Electricity issues.
Wind energy not sufficient.
The most accurate energy available on time every time is tidal.
SAE should be pushing this and Uskmouth....
Thanks Silentalker for walking us through that complicated process.
The link to the Guardian article is pasted below, provided by FelixFox in an earlier post.
Even if the amount of CfD money awarded is less than hoped for it would provide a revenue stream to address the going concern question facing SAE.
https://www.theguardian.com/environment/2021/sep/13/uk-to-offer-265m-in-subsidies-for-renewable-energy-developers?CMP=Share_iOSApp_Other
Seen this today as well. Think it will be of any use?
https://on.ft.com/3lr2dnU
"A large fire at Britain’s main electricity subsea cable will reduce imports from France until the end of March, National Grid has warned, triggering fears over tight supplies at a time when power prices have surged to record highs."
Not a new document but the SAE parliamentary evidence on the state of Meygen, how it was let down by past government decisions, and considerable potential remaining, is always handy as a primer on the state of the company but arguably the sector overall.
https://committees.parliament.uk/writtenevidence/19447/pdf/
The document sees tidal targeting £150/MW but only after the first 100MW installed capacity. Whether SAE feel they can hit £210~ as stated in the new round seems a bit tight. I would be cautiously optimistic about some small increase of capacity at Meygen - it's the UK's largest site, so much is already in-place, and I can't imagine anyone being better placed to hit that price.
That said - it's definite a disappointing amount of funding that won't make much difference and isn't the step-change we'd have hoped. Perhaps the current gas and electricity prices and the compound effect of low wind will help make ministers aware of the problems we're getting into here, problems more offshore floating isn't going to help solve. Feels like a really criminal neglect of baseload in both the campaigning and policy on renewables right now, I would anticipate some small opportunity for SAE from this CfD but that people and companies are going to have keep on pressing the point about tidal for a while yet.
Have been mentions of more details to this CfD outlined between now and December. It'd obviously be good to see something specific on tidal put through within that. Current energy market conditions should be favourable for both tidal and Uskmouth, but we wait and see.
Don’t know if you’ve been keeping up with wholesale prices but at this rate we probably won’t even need a cfd!
https://datawrapper.dwcdn.net/jbjBC/5/
A bit of chat in the other thread, but I think this deserves its own topic.
Personally, I don't think there was any good news in the draft budget notice.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1016774/cfd-ar4-draft-budget-notice.pdf
As Alnew pointed out, there is a £24 million minima (not maxima) for floating Offshore Wind (FOW) from Pot 2, leaving only £31 million for the remaining technologies + any excess capacity FOW can provide under the strike price. If you look at the table of ASPs, Tidal Stream is 2nd highest. Given that ASPs are calculated so that 25% to 50% of the possible supply curve is deliverable for less than the ASP for any given technology, I think it is highly unlikely that any contracts will go for anywhere near a strike of £200/MWh. Unless Atlantis can put in a bid far, far below the ASP - significantly below £100 I expect - then I don't think they'll be winning any contracts as things stand.
It's incredible to me that there is such a small budget for pot 2 given the relatively stringent ASPs anyway - why not have secondary ASPs calculated at 5% of supply for which no cap applies, so that a small number of projects from each tech always get some funding? As it stands, less well developed technologies don't get any projects set up and so progress is frustratingly slow. It's maddening that they don't fund a small number for R&D purposes.
The biggest ray of hope is this line from p.4:
"Any additional minima will be set out ahead of, or in, the final budget notice. "
I couldn't see the Guardian article SARS referenced, but if someone could link to it I'd appreciate that. If there is a minimum (pot within a pot) for tidal then I'd expect a large SP movement, but otherwise I don't think a CfD is on the cards.
For anyone interested, the strike price methodology is here (see page 8 for the percentage I quoted):
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1016681/cfd-ar4-asp.pdf