2min chapter

Energy Unplugged by Aurora cover image

EP.102 Global Project Finance Series in partnership with SMBC Group PART I - Europe

Energy Unplugged by Aurora

CHAPTER

The Uncertainty in the UK Power Markets

I think what's going to be really interesting to see is the outcome of the UK CFD round that's going on over this summer. Even if you do take into account those higher costs, and we saw that in some recent auctions where only six months ago the results of solar auctions,. for example, were very different to the ones that we saw in October. Now a big portion of that was just the cost, the capex cost. But even with that increase, we still see a massive discount to merchant prices, to your point, John. So it's not just oil. If you look at wholesale markets for electricity, they're incredibly high at the moment.

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