World's biggest offshore windfarm approved as prices drop to record low

Offshore wind farm subsidy costs drop to record lows in latest contract round

In fact, the cost of offshore wind projects in the United Kingdom is now 50% lower than the first auction held as recently as 2015 when comparing the lowest clearing price for successful offshore wind projects commissioning in 2018/19 and the lowest clearing price for offshore wind projects commissioning in 2022/23.

SEPTEMBER 11, 2017- Within days of completing the dismantling of the world's first offshore wind farm, Denmark's DONG Energy has been awarded a contract to build what will be the world's largest: Hornsea Project Two. They are also are cheaper than the cost of the 35-year contracts for new nuclear power of £92.50 ($122) per megawatt hour, and cheaper than the levelized cost of gas.

He said the Government would be setting out ambitious proposals to seize industrial opportunities from low-carbon development in its forthcoming "clean growth plan", due to be published in the autumn.

"One technology alone can't solve the UK's power challenge", Tom Greatrex, chief executive of the Nuclear Industry Association, said in a statement ahead of the release of the latest auction results.

Energy from offshore wind in the United Kingdom will be cheaper than electricity from new nuclear power for the first time with the subsidy of £57.50 comparing with a figure of £92.50 per MWh for the new Hinkley Point C nuclear plant being built in Somerset.

"Falling prices for low carbon technologies show that electricity market reforms are working as intended".

"We were pleasantly surprised by the low price bids in the latest auction", Ware told AFP, describing it a "vindication" of government policy.

Greenpeace said that the auction result means offshore wind is now the lowest cost option for large-scale, low-carbon power.

The gains have reportedly been made due to bigger turbines and higher voltage cables being made available in the previous year.

Danish Dong Energy was awarded the Hornsea Project 2 with an impressive 1,386MW offshore wind installed capacity which is expected to power 1,440,300 English households.

"This is a breakthrough moment for offshore wind", Matthew Wright, managing director for Dong in the United Kingdom, said in a statement. At this record low price, offshore wind power is a great deal for United Kingdom energy.

However, the United Kingdom still needs nuclear power especially for when wind power was not possible.

However, the nuclear industry said that because wind power is intermittent, nuclear energy would still be needed.

"Long-term and highly-skilled jobs are being created across the North of England and the United Kingdom supply chain is going from strength to strength".

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