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Renewables auction reveals record low subsidies for offshore wind

Words: Huw Morris
Onshore wind farm / Shutterstock_113567881

Twelve renewable energy projects have been awarded contracts with record low subsidies by the government in response to the fall in the cost of offshore schemes.

Prices for new offshore wind farms in the latest auction for contracts – which guarantee a set price for power from renewable schemes – have fallen by 30 per cent since the last auction in 2017, to as low as £39.65 per megawatt hour.

The projects will provide 5.8GW, enough power for more than seven million homes.

RenewableUK said the offshore schemes would support 7,000 jobs and bring up to £12.8 billion of investment.

“Securing this record amount of new renewable energy capacity in this auction is the biggest single step that the UK has taken towards meeting our net zero emissions target,” said chief executive Hugh McNeal.

“As these results show, offshore wind is the key technology for this country in tackling the climate emergency. Offshore wind will be the backbone of the UK’s clean, modern energy system and will supply at least a third of our power by 2030.”

He added that the projects would benefit coastal communities which are industrial hubs for the offshore wind sector, including Grimsby, Hull, Teesside, Lowestoft, Great Yarmouth, the Isle of Wight and Aberdeen.

A list of the projects is available here

Image credit | Shutterstock