11 September 2017 2017 10:24 AM GMT

Offshore Wind Prices Drop By 50% In 5 Years. Now Cheaper Than Nuclear And Gas

RenewableUK 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 for Business, Energy and 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’s Hornsea 2 off the coast of Yorkshire, Innogy and Statkraft’s Triton Knoll off the coast of Lincolnshire, and EDPR’s 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.

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 new nuclear power of £92.50 per megawatt hour, and cheaper than the levelised cost of gas, according to figures from the Department of Business, Energy and Industrial Strategy.

Hornsea 2 and Moray will begin generating in 2022/23 at £57.50 per megawatt hour, and Triton Knoll in 2021/22 at £74.75/MWh, with prices guaranteed for 15 years of an expected project life of 25 years.

Welcoming this morning’s results, RenewableUK’s Chief Executive Hugh McNeal said: “We knew today’s 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 £17.5bn into the UK over the next 4 years whilst saving our consumers money.

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

“Today’s results mean that both onshore and offshore wind are cheaper than gas and nuclear. But this young, ambitious industry can go even further. The 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.

“Congratulations 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.

“It’s great to see these excellent results for offshore wind. It’s 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”.

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, RenewableUK is the country’s leading renewable energy trade association.

The 3 winning offshore wind projects are: Triton Knoll (Innogy/Statkraft) 900MW, off the coast of Lincolnshire; Moray (EDPR) 1,116MW off the northeast coast of Scotland and Hornsea 2 (DONG Energy) 1,800MW, off the Yorkshire coast. For gas prices, see the Department of Business, Energy and Industrial Strategy document “Electricity Generation Costs” (Nov 2016)

December 12th 2017
Global Trade In Biofuels Featured At International Renewable Mobility Conference

A significant proportion of global energy use, is in transportation. Action is crucially needed to bring about an energy turnaround in this sector and it’s a topic that has moved higher up the political agenda again since Dieselgate, and with growing calls for a rapid introduction of electromobility. In Germany, the Working Group on Energy Balances (AG Energiebilanzen) has calculated the final energy consumption of 728 TWh by the transport sector in 2016. Data from the German Environment Agency (UBA) reveals that over 90 percent of fuel deployed is derived from mineral oil. World-leading experts meeting in a parallel forum at the 15th International Conference on Renewable Mobility will analyse biofuel trading worldwide, examining various perspectives on requirements, the current state of play and forecasts.

December 12th 2017
Renewable Future Challenges UK And Germany To Build Flexibility In Power Systems

A new economic study highlights that future energy systems in the UK and Germany, with very high levels of variable renewable generation, must be complemented by flexible resources, including energy storage. The study was released by Bloomberg New Energy Finance (BNEF). “This study highlights a seismic shift in how power systems will operate in the future. As wind and solar become the cheapest options for power generation, the race is on to develop and deploy the flexible resources that will complement them,” said Albert Cheung, head of global analysis at Bloomberg New Energy Finance.

December 13th 2017
EDF Commissions 179 MW At Two Solar Power Plants In Nevada

Policy makers led by US Senator Harry Reid were present at a celebration formally recognising Switch Stations 1 and 2 solar power plants, with a combined generation capacity of 179 MWac, as fully commissioned and in commercial operation. Senator Reid stated “Less than a decade ago, Nevada’s solar energy landscape was nonexistent, but this commissioning helps fulfil the vision I had to make our state the leader in renewable energy development. A technology giant like Switch committing to using 100% renewable energy is truly visionary and grows our clean energy economy by creating hundreds of good-paying construction jobs here.”

December 8th 2017
By 2036, Clean Energy Can Account for 37% of The Energy Mix For Thailand

With a stronger and more ambitious energy development plan, Thailand’s share of renewable energy in total final energy consumption could surpass its national target by a quarter and reach more than 37 percent by 2036, according to a new report published by the International Renewable Energy Agency (IRENA) and the Ministry of Energy of Thailand. Renewable Energy Outlook: Thailand finds that decreasing imports of fossil fuels and increasing the share of renewables in the energy mix to 37 percent would improve energy security and reduce the cost of Thailand’s energy system by USD 1.2 billion annually by 2036.


 

   

PS_Wind Energy_Masters_171