{"id":8505,"date":"2017-09-11T10:24:16","date_gmt":"2017-09-11T10:24:16","guid":{"rendered":"https:\/\/cleanenergyworld.net\/index.php\/2017\/09\/11\/offshore-wind-prices-drop-50-5-years-now-cheaper-nuclear-gas\/"},"modified":"2017-09-11T10:24:16","modified_gmt":"2017-09-11T10:24:16","slug":"offshore-wind-prices-drop-50-5-years-now-cheaper-nuclear-gas","status":"publish","type":"post","link":"https:\/\/cleanenergyworld.net\/index.php\/2017\/09\/11\/offshore-wind-prices-drop-50-5-years-now-cheaper-nuclear-gas\/","title":{"rendered":"Offshore Wind Prices Drop By 50% In 5 Years. Now Cheaper Than Nuclear And Gas"},"content":{"rendered":"

RenewableUK<\/a> is highlighting the dramatic fall in the cost of offshore wind in the results announced today of competitive auctions for new contracts to provide clean electricity. The Department\u00a0for\u00a0Business,\u00a0Energy\u00a0and Industrial Strategy has announced that 3 offshore wind projects were successful, as they put in the lowest bids for Contracts for Difference (CfDs). The winning projects are DONG Energy\u2019s<\/a> Hornsea 2 off the coast of Yorkshire, Innogy <\/a>and Statkraft<\/a>\u2019s Triton Knoll off the coast of Lincolnshire, and EDPR<\/a>\u2019s Moray off the northeast coast of Scotland. The new wind farms, with a total capacity of 3,196 megawatts, will power the equivalent of more than 3.3 million homes.<\/p>\n

The cost of offshore wind has plummeted since the last competitive auction results were announced in February 2015, with the new prices on average 47% lower than they were just over two and half years ago. The offshore wind prices announced today are cheaper than the cost of the 35-year contracts for\u00a0new\u00a0nuclear power of \u00a392.50 per megawatt hour, and cheaper than the\u00a0levelised\u00a0cost of gas, according to figures from the Department of Business,\u00a0Energy\u00a0and Industrial Strategy.<\/p>\n

Hornsea 2 and Moray will begin generating in 2022\/23 at \u00a357.50\u00a0per megawatt hour, and Triton Knoll in 2021\/22 at \u00a374.75\/MWh, with prices guaranteed for 15 years of an expected project life of 25 years.<\/p>\n

Welcoming this morning\u2019s results, RenewableUK\u2019s Chief Executive Hugh McNeal said:\u00a0\u201cWe knew today\u2019s results would be impressive, but these are astounding. Record-breaking cost reductions like the ones achieved by offshore wind are unprecedented for large energy infrastructure. Offshore wind developers have focused relentlessly on innovation, and the sector is investing \u00a317.5bn into the UK over the next 4 years whilst saving our consumers money.<\/p>\n

Today\u2019s results are further proof that innovation in the offshore wind industry will bring economic growth for the UK on an industrial scale.\u00a0The UK needs to establish new trading opportunities as we leave the European Union, and the UK\u2019s offshore wind sector is a world leader in a global renewable energy market currently worth $290 billion a year.<\/p>\n

\u201cToday\u2019s results mean that both onshore and offshore wind are cheaper than gas and nuclear. But this young, ambitious industry can go even further.\u00a0The Government can help us by continuing to hold fiercely competitive auctions for future projects, as it has promised, and by putting offshore wind at the heart of its upcoming Industrial Strategy.<\/p>\n

\u201cCongratulations to the successful bidders: DONG Energy for Hornsea 2, Innogy and Statkraft for Triton Knoll and EDPR for Moray. These projects are the powerhouses of the future.<\/p>\n

\u201cIt\u2019s great to see these excellent results for offshore wind. It\u2019s important that innovative renewable technologies, including wave energy and tidal energy projects also have a route to market, so different mechanisms are needed to ensure these cutting-edge technologies can develop. Tidal energy projects are already showing cost reductions and with the right encouragement can undergo the same sort of journey as offshore wind. Onshore wind is the cheapest from of new power, so it deserves an opportunity to compete too\u201d.<\/p>\n

RenewableUK is the trade and professional body for the wind, wave and tidal energy industries. Formed in 1978, and with more than 400 corporate members,\u00a0RenewableUK<\/a>\u00a0is the country\u2019s leading renewable energy trade association.<\/p>\n

The 3 winning offshore wind projects are: Triton Knoll<\/a>\u00a0(Innogy\/Statkraft) 900MW, off the coast of Lincolnshire; Moray<\/a>\u00a0(EDPR) 1,116MW off the northeast coast of Scotland and Hornsea 2<\/a>\u00a0(DONG Energy) 1,800MW, off the Yorkshire coast. For gas prices, see the Department of Business, Energy and Industrial Strategy document \u201cElectricity Generation Costs<\/a>\u201d (Nov 2016)<\/p>\n","protected":false},"excerpt":{"rendered":"

Offshore wind continues to highlight UK market leadership. During the last decade; government support and innovation combined with increases in turbine efficiency and sizes have resulted in the UK heading the global ‘installed capacity’ charts. Figures just published show that offshore wind is now the lowest cost option for large-scale, low-carbon power. Advances in turbine technology have contributed significantly to recent reductions in costs per megawatt hour. Huge blades, with a single rotation, now can generate enough energy to power a home for 24 hours. Impressively, by the mid-2020s turbine, capacities are set to double again.<\/p>\n","protected":false},"author":2,"featured_media":6899,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[682,687,677,680],"tags":[874,1301,1302,1287,695],"class_list":["post-8505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-carbon","category-europemiddle-eastafrica","category-head-lines","category-wind","tag-dong","tag-energy-prices","tag-hornsea","tag-offshore-wind","tag-wind"],"yoast_head":"\nOffshore Wind Prices Drop By 50% In 5 Years. 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