Yahoo Finance Energy from offshore wind farms to be cheaper than nuclear power
Energy from offshore wind farms will be cheaper than nuclear power and gas for the first time, bringing economic growth to the UK “on an industrial scale”.
Figures from the latest government auction for the contracts – which guarantee a set price for power from renewable technologies – reveal that the cost of subsidies for offshore wind projects have fallen by 50% since 2015.
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Three offshore wind farms were among 11 schemes to have successfully bid in the latest auction for government subsidies, and will provide enough electricity for 3.6 million homes. Prices will be as low as £57.50 per megawatt hour for offshore wind energy projects delivered in 2022/2023.
Technological developments such as bigger turbines and competition between UK suppliers have helped contribute to the falling prices.
Energy and industry minister Richard Harrington said that the offshore wind sector will boost investment to the UK economy by £17.5bn up to 2021, creating “thousands of new jobs” in British businesses.
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“This government will continue to seize these opportunities as the world moves towards a low carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan,” he said.
Industry body RenewableUK’s chief executive Hugh McNeal said the “record-breaking” cost reductions were unprecedented for large energy infrastructure, and onshore and offshore wind were now cheaper than both new nuclear and gas.
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“Today’s results are further proof that innovation in the offshore wind industry will bring economic growth for the UK on an industrial scale,” he said.
But Tom Greatrex, chief executive of the Nuclear Industry Association, said one technology alone could not solve the UK’s power challenge, and the full range of low-carbon energy would be needed to power UK homes and businesses.
