The results of an energy subsidy auction held by the government will prove offshore wind farms are a much cheaper way to meet the UK’s future electricity needs than contentious nuclear projects such as Hinkley Point, supporters of renewable technology have claimed. The latest auction results, to be published on Monday, are expected to show a dramatic fall of as much as nearly 50 per cent in the minimum electricity price that is guaranteed by the government to offshore wind farm developers compared with the last similar subsidy round in 2015. They are also expected to show a substantial discount on the £92.50 per megawatt hour “strike price” guaranteed by the government to the French and Chinese companies behind the Hinkley Point nuclear plant in Somerset during its first 35 years of operation. The Hinkley price, which was set in 2012, rises with inflation and is now worth closer to £100/MWh. The latest subsidy auction was aimed by the government at “less established technologies” including offshore wind and energy derived from tidal currents. Successful offshore wind projects are expected to be guaranteed electricity prices in a range of £60 to £75/MWh for 15 years linked to inflation, according to Cornwall Insight, a consultancy. This compares with the average £117.14/MWh awarded to offshore projects in the last auction in 2015.
FT 8th Sept 2017 read more »
Renewable UK 8th Sept 2017 read more »