The first green energy subsidy auction to be held for two years is expected to pave the way for an offshore wind boom, as the costs of building renewable farms out at sea tumble faster than experts predicted. The Government has set a £730m budget for three auctions for emerging renewable technologies by 2019, and it has ruled out pouring any more funds into onshore wind and solar energy. The first of the three, a £290m auction, will kick off this week, and is expected to show that the decline in costs is about a decade ahead of schedule. Ben Warren, a partner at EY, said the “huge interest” in the auction should cut the cost of offshore wind by a quarter from previous winning bids. “I wouldn’t be surprised if we saw a dramatic reduction in costs to below the £85/MWh target set by Government for 2026,” he said. “This put s the technology nine years ahead of schedule. These results will really call into question the affordability of nuclear and some of the large tidal projects,” Mr Warren said.
Telegraph 1st April 2017 read more »