Offshore Wind Energy To Cost The Cheapest In UK Now

The biggest ever renewable energy auction in the United Kingdom is bearing fruit for the people and industry as the prices of the offshore wind power, just the second day post auction, has dropped to its cheapest level in the country’s history. Now, the power from fresh auctions will be sold for a mere £37.35 for every MWhb which is 5.8 per cent below the lowest bid of 2019.

The UK government has revealed that the contract price for wind farm power was almost 6 per cent lower than the auction held previously. This is despite the fact that the materials cost to build wind-farms is increasing.

The Mega Addition Of Offshore Wind Energy

The new auctions are expected to add nearly 7 GW of green energy capacity to the United Kingdom by 2026 and this could rise to 50GW by the end of this decade.

Under the ‘contracts for difference’ the wind energy players have fixed prices to sell electricity for the next 15 years. In case the market price dip below the contract price, the UK government will pay the difference to the wind energy players. When the market situation is otherwise, companies are required to remit back the money to the government.

The business secretary, Kwasi Kwarteng, stated, “Eye-watering gas prices are hitting consumers across Europe. The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills.”

Meanwhile, Keith Anderson, CEO, Scottish Power, has requested the government to expedite new renewables projects’ approval and connect them to the grid system.

Gareth Miller, Chief Executive Officer, Cornwall Insight, held, “As consumer bills rise to unprecedented levels, these results show the value that renewables can play in driving down the cost of power generation, decoupling electricity bills from gas prices, and all in an environment currently where high gas prices are setting the electricity price in the market.”