Government should consider buying volume of renewable power – megawatt hours over megawatts – according to Cornwall Insight.
The consultancy has published a paper that suggests reforming the contracts for difference (CfD) policy to buy volume over capacity could better meet carbon budgets while providing greater investor certainty and closer integration with the capacity market.
It sets out examples of volume-based approaches in Poland and Brazil, where governments buy megawatt hours – with penalty clauses for under delivery. Ireland is also set to move to a volume-based approach.
The report suggests auctions could be run for delivery four or five years ahead with volumes determined by the level of decarbonisation required to hit the current or next carbon budget.
Auctions could then be aligned with the Capacity Market timetable to enable a more joined up procurement policy that brings together decarbonisation and security of supply.
See details here.
Related stories:
Government seeks views on bringing renewables into 2019/20 capacity auction
Capacity market ‘buying the wrong stuff because it is joined up with nothing’Â
Government confirms CfD timetable
Scottish Power chief: You’re bonkers if you think we will build offshore wind ‘subsidy-free’
Aurora: Zero subsidy CfDs could deliver 30GW of offshore wind
Aurora: Bring unsubsidised renewables into Capacity Market
Liquid air energy storage firm plans big Capacity Market bid
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.
