The costs of producing renewable electricity in the United Kingdom from wind and sun have dropped dramatically in the last four years and will continue to fall until 2040, according to the British government’s own estimates. A report, Energy Generation Cost Projections, 2020, by the Department for Business, Energy and Industrial Strategy, shows that wind power, both on and offshore, and solar energy will produce electricity far more cheaply than any fossil fuel or nuclear competitor by 2025. Costs have fallen so far and so fast that the department admits it got its 2016 calculations badly wrong, particularly on offshore wind farms. This was mainly because the turbines being developed were much larger than it had bargained for, and the size of the wind farms being developed was also much bigger, bringing economies of scale. The new report avoids any comparison with the costs of nuclear power, leaving them out altogether and merely saying its cost assumptions have not changed since 2016. Nuclear costs are a sensitive issue at the department because the cost estimates its report used for nuclear power in 2016 were optimistic, and although the report does not comment there have already been reports that they are expected to rise by 2025.
Climate News Network 31st Aug 2020 read more »