Offshore staff
LONDON — New analysis by RenewableUK shows that wind farms awarded contracts over the last seven years by the government to generate clean power will save each household nearly £250 (US$287) per year, compared to the cost of generating electricity from gas at this winter’s prices.
The analysis shows that the 19 GW of wind farm capacity, which have won Contracts for Difference (CfDs), so far will generate 93 terawatt hours (TWh) by the time all these power stations come online in 2027. This represents 30% of annual UK electricity generation at present and is enough to power nearly 25 million homes a year.
Costs have fallen sharply over the past seven years, RenewableUK states, with the latest round of offshore wind projects coming in 70% cheaper than those awarded contracts in 2015, making offshore wind the cheapest source of new power in the UK. Wind farms supported by CfDs will generate 93 TWh at a total cost of £5 billion (US$5.7 billion). The equivalent cost of getting that electricity from gas would be about £26 billion (US$29.8 billion) at current prices, so this represents a saving to consumers of more than £20 billion (US$22.9 billion), with every UK household benefitting by £246 (US$282) per year.
RenewableUK is urging the government to accelerate the rollout of new renewables to avoid future gas crises for consumers. The new figures come against the backdrop of the Energy Prices Bill, which would cap companies’ revenues and is putting investment at risk. RenewableUK said it could distort energy markets by skewing incentives toward fossil fuels.
10.25.2022
