THE newest wave of UK offshore wind farms could produce power so cheaply that they pay money back to consumers, researchers have said.
As offshore wind was rolled out in UK waters, it faced criticism that it required high levels of subsidies, pushing up people’s energy bills.
But experts from Imperial College London say the most recently approved offshore wind farms will most likely operate with “negative subsidies”, which will pay money back to the Government and reduce bills.
Their analysis, published in the journal Nature Energy, suggests the UK will see the world’s first negative-subsidy offshore wind farms in the mid-2020s. In the UK, the cost of offshore wind energy has plummeted in just a few years from around £150 for each megawatt hour (MWh) of electricity generated to £40 per MWh in the latest auctions In 2019.
Under the auction process, projects compete for contracts which guarantee a certain price, known as the “strike price”. If this is lower than the wholesale electricity price, the company has to pay back the difference.
Lead researcher Dr Malte Jansen said: “Offshore wind power will soon be so cheap to produce that it will undercut fossil-fuelled power stations and may be the cheapest form of energy for the UK.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel