03-05 March 2020 / ExCeL, London
Tue & Wed 10:00 – 18:00, Thu 10:00 – 16:00

Energy from new offshore windfarms to come at no extra cost to consumers for first time after subsidies drop to record low

23 Sep 2019

Energy from new offshore windfarms to come at no extra cost to consumers for first time after subsidies drop to record low

Energy created by new offshore windfarms will come at no extra cost to British bill payers for the first time after the price of state subsidies dropped to its lowest rate, the Government has said.

The Department for Business, Energy and Industrial Strategy revealed the price for renewable power from new schemes has fallen below £40 per megawatt hour of electricity.

The record-low price means that supporting the new generation of offshore windfarms will not add any additional costs onto energy bills.

Some 12 new renewable energy projects, including offshore and remote island wind schemes, have secured contracts to provide enough power for more than seven million homes.

30 per cent fall

Prices for new offshore wind farms in the latest auction for the contracts - which guarantee a set price for power from renewable schemes - have fallen by 30 per cent since the last auction in 2017, to as low as £39.65 per megawatt hour.

The successful projects include four Scottish island wind farm schemes and six offshore wind projects in the waters off Scotland and England, which are set to be delivered between 2023 and 2025 for between £39.65 and £41.61 per megawatt hour.

The price of offshore wind has fallen two-thirds since the first auctions for the contracts were held in 2015.

Prime Minister Boris Johnson said: "The UK is leading the way in the fight against climate change, and it's great news that millions more homes will be powered by clean energy at record low prices.

"Seizing the opportunities of clean energy not only helps to protect our planet, but will also back businesses and boost jobs across the UK."

'British success story'

Energy and clean growth minister Kwasi Kwarteng said: "Offshore wind is a British success story, with new projects at record low prices creating new opportunities for jobs and economic growth as we leave the EU.

"The support we're announcing today will mean that over seven million more homes will be powered by renewable energy as we decarbonise our energy system - crucial as we continue on the road to net zero emissions by 2050."

In total, the projects will deliver six gigawatts of power, enough to supply millions of homes, with offshore wind delivering the lion's share, with 5.5 gigawatts.

Industry body RenewableUK said the offshore schemes would support 7,000 jobs and bring up to £12.8 billion of investment.

Coastal communities in places such as Grimsby, Hull, Teesside, Lowestoft, Great Yarmouth, the Isle of Wight and Aberdeen, which are hubs for the burgeoning industry, are expected to benefit from the latest boost to offshore wind.

Article & image source: iNews

View all In the news
Loading

Partners & Supporters

Sign up to the newsletter