At lower prices, electricity production from offshore wind farms is expected to move compared to the production of electricity from natural gas in the United Kingdom until 2023, according to a Carbon Brief analysis published shortly after Announcement of the results of the third cycle for "contracts in dispute" (Contract for Difference-CfD).
The price per MWh for the offshore wind farms planned to be completed in 2023/2024 reached 36.64 pounds in a competition. This is priced at 2012 and translated to 44 pounds/MWh if we adjust inflation. According to the CfD model, power plants ensure a stable price for 15 years.
If the reference value goes below it, then they receive a subsidy. But if the wholesale market price is higher, they pay the difference. Significant progress has also been made in reducing the cost of offshore wind, as in the first wind sea projects in the UK's open sea with CfDs the price was at 150 pounds per MWh at 2012 prices.
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