Comment by 7952

Non CfD offshore wind farms probably can be economical without CfD if they had access to very cheap capital. But without CfD the risk is higher and so is the profit margin on the debt which ultimately makes it more expensive to generate the electricity which in turns increases risk of low wholesale prices.

Also, for years CfD rates were actually lower than wholesale price and are currently generating at lower strike prices than average wholesale prices. The problem now is more inflation, capital costs, and commodity prices for materials. But then a lot of other things are more expensive also.