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A major marker for wind power and clean energy has been achieved, with figures revealing offshore wind power is now cheaper than nuclear for the first time.
The news is a further boost to the UK’s low-carbon supply chain, as part of the government’s ambitious Industrial Strategy and upcoming Clean Growth Plan.
The figures for offshore wind were revealed by the Department for Business, Energy and Industrial Strategy, and are the result of an auction for subsidies, in which the lowest bidder wins.
This competition has driven down the cost for consumers, with new offshore wind projects delivered as low as £58/MWh from 2022-23.
The Government is committed to investing in clean technology and driving economic growth through the Industrial Strategy and upcoming Clean Growth Plan, and with the latest figures in mind, it has announced the latest round of competition auction renewable technologies. The latest round will see 11 new ‘green’ energy projects, worth up to £176M per year.
The projects, which are set to generate over 3GW of electricity, enough to power 3.6 million homes, demonstrate that the UK continues to be an attractive place to invest in clean energy.
Cost reductions in the renewable energy industry are being driven by competition and the development of technology. Costs for offshore wind are now 50% lower than the first auction held in 2015. While wind power is not the only big developer, other successful technologies such as Advanced Conversion Technologies and Dedicated Biomass with Combined Heat and Power, have also achieved significant savings.
Minister for Energy and Industry, Richard Harrington, said: “We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions.
“The offshore wind sector alone will invest £17.5Bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today. 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.”
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