Contracts for Difference (CfD) auctions must be reformed to fill a looming hole in the UK’s carbon budgets, Cornwall Insight has argued in a new report. The energy consultancy says the amount of renewable generation procured in the auctions should be determined by volume targets measured in megawatt hours rather than subsidy budgets measured in pounds. According to the report, titled ‘Turn up the Volume’, the current “spend and hope” approach creates “inherent uncertainty” as to whether enough renewable power will be secured to meet emissions targets. Although it concedes there are “merits” to monitoring and controlling costs to consumers, the report says the present method of doing so is “so crude and subject to erroneous and dynamic assumptions” it is not even clear whether it works.
Edie 19th Nov 2018 read more »