New North Sea windfarms to get multi-national connections...

I'm wondering how the subsidy and support arrangements will work?

Currently in GB, windfarms bid into the Contract for Difference (CfD) auctions to secure an inflation-linked, fixed price contract for their generation, paid for by GB consumers, on the basis that all the power is flowing into GB, benefitting GB consumers.

Of course if that wind farm is now connected to two or more countries, with the power potentially flowing to different countries, varying continuously depending on wholesale prices, that's a much more complex question of how to determine where the power should flow, how that power should be valued and how the subsidy costs should be apportioned between the different countries and their consumers.

A free market. Hooray!

fixed price contract for their generation

As I understand it, it's fixed per unit price (per MWh) - so if the power goes elsewhere, they won't get paid for it.

   - Andy.

But another country will get electricity subsidised by the UK.  CfDs work on the basis that all the electricity is supplied into the UK, - a certain amount of capacity is being funded and the expectation is that the UK will benefit from getting power at a cheap rate when electricity prices are high, partly funded by us paying over the odds when electricity prices are low.

If the electricity goes elsewhere when prices are high then we lose out.  Of course, the UK would be quite happy not to pay over the odds for electricity when prices are low, but if prices are low will there really be that much demand from elsewhere?

But another country will get electricity subsidised by the UK.  CfDs work on the basis that all the electricity is supplied into the UK, - a certain amount of capacity is being funded and the expectation is that the UK will benefit from getting power at a cheap rate when electricity prices are high, partly funded by us paying over the odds when electricity prices are low.

If the electricity goes elsewhere when prices are high then we lose out.  Of course, the UK would be quite happy not to pay over the odds for electricity when prices are low, but if prices are low will there really be that much demand from elsewhere?