Offshore Wind, a publication as specialist as the name suggests, declared itself “astounded” by the outcome of the latest round of Contract for Difference auctions. The rest of us are therefore entitled to raise our eyebrows and to speculate upon the implications that will flow from this event. The projects involved still represent the low hanging fruit of offshore wind, relatively close to shore and thus less difficult to maintain. Whether this precipitous drop in the cost of offshore wind can be applied more generally remains to be seen. For the time being though, the pointers head in only one direction – downwards. Headlines have concentrated on the comparison between offshore wind and new nuclear with Hinkley Point based on a guaranteed price of #92.50 per megawatt hour. In truth, this playing-off is unhelpful to the debate as the need for low-carbon baseload to complement renewables remains compelling. As I have long argued, renewables and nuclear should not be seen as competitors but two sides of the same low-carbon coin.
Energy Voice 3rd Oct 2017 read more »