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Highest prices yet in auction for green power purchases
1 March 2008
The highest prices yet achieved in a UK auction of green power were recorded last month. Wind reached a price of £106/MWh (EUR 140.74/MWh) while the average price for all renewables came in at £104.40. An on-line auction of green power not supported under the current Renewables Obligation legislation is conducted twice a year by the government's Non-Fossil Purchasing Agency (NFPA). Eleven bidders secured the capacity. Up for grabs was 812 MW from 296 projects mainly supported under the now obsolete Non-Fossil Fuel Obligation (NFFO) and Scottish Renewables Obligation. The capacity is for electricity to be produced between April and September this year. The prices cover the electrical output, Renewables Obligation Certificates (ROCs) and Climate Change Levy Exemption Certificates. The unusually high prices for a summer period, which tends to be lower than for winter, indicate the sharp rise in power prices generally. NFPA points out that the £104.40 average price represents a 45% increase over the equivalent auction for a summer period held in January 2007. That produced an average price of £72/MWh. ROC prices also continue to rise steadily. A separate auction in January, this time just of ROCs, recorded the highest ever average price of £49.95.
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