Talking New Energy: AR8 - Why strike prices don’t tell the whole story
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In this episode, Sam Hollister speaks with Bertalan Gyenes, Senior Consultant at LCP Delta about the UK government’s Contracts for Difference (CfD) Allocation Round 8 (AR8) and what its changes mean for renewable energy developers, policymakers and consumers.
We discuss:
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Why AR8 is a critical milestone for the UK’s Clean Power 2030 ambitions, particularly for offshore wind projects.
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How the government’s new approach to auction design aims to balance different renewable technologies and minimise the overall cost to consumers.
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What LCP Delta’s modelling reveals about the potential savings from the right combination of renewable capacity and strike prices, and what to watch for as the auction progresses.
What’s one thing you would like listeners to take away from this?
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The lowest strike price does not necessarily mean the lowest cost for consumers. The combination of technologies, the prices secured and their impact on the wider electricity market all matter when assessing the value of new renewable generation.
