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Calculate wind farm capacity factor, net generation after grid losses, and CfD revenue scenarios.
Model capacity factor, generation, and net load factor
Wind farm capacity factor depends on wind resource quality (location, altitude), turbine efficiency (power curve), and availability (downtime). UK offshore wind: 42โ52% CF. Onshore: 25โ35% CF.
A 100 MW wind farm running at 42% capacity factor produces 42 MW of power on average over a year (equivalent to 100 MW running at 42% power). UK offshore wind achieves 42โ52% CF due to stronger, more consistent winds at sea. Onshore wind achieves 25โ35% due to terrain and lower average wind speeds. Hornsea One (world's largest offshore farm, 1,218 MW) has achieved ~40% CF, confirming real-world offshore performance.
Wake Effect and Array Efficiency: Wind farms lose 5โ10% of potential output to "wake effect"โturbines downwind of others experience reduced wind speed. Modern optimization (larger spacing, optimized layout) minimizes this. Availability factor (% of time turbines are running) is typically 96โ98% for offshore, 94โ96% for onshore (requires maintenance, repairs).
Weibull Distribution: Wind speed varies seasonally and daily. UK offshore follows Weibull kโ2, cโ9โ10 m/s. Power output is proportional to wind speed cubed (P โ vยณ). Small increases in mean wind speed dramatically increase power output. P50/P90 yield assessments account for historical wind variability.
CfD Mechanics: Contracts for Difference guarantee a strike price. If wholesale market price falls below strike, generator receives difference. If price rises above strike, generator pays difference. AR4 (2019) cleared at ยฃ37โ40/MWh (2012 real) for offshore. Generator takes full market revenue risk above/below strike. Cost to government: strike price minus forecast reference price, multiplied by generation volume.
Net Load Factor: After grid losses (TNUoS transmission charges, balancing costs), net load factor is typically 97โ98%. CfD difference revenue = (Strike Price โ Reference Price) ร Generation MWh. Reference Price is EPEX-based, published daily. Positive payment when market < strike; negative (generator pays back) when market > strike.