UK sufferes drop in subsidies for offshore windfarms

Subsidy costs for British offshore windfarms are likely to fall below that of new nuclear plants in next month’s UK government auction, the head of Siemens offshore wind turbines business has said.

The UK government is under pressure to bring down users’ electricity costs at the same time as subsidising low-carbon generation to help meet its carbon emission reduction targets and plug a looming supply gap.

The next government auction setting prices for new renewable power projects will open in April and Clark MacFarlane, Siemens managing director for offshore wind, said this could see offshore wind costs fall below new nuclear for the first time.

“I predict the price for offshore wind in the upcoming auction will be lower than that given to Hinkley,” he told Reuters.

“The price will keep coming down, as we find better logistic solutions, new grid solutions, as well as bigger turbines,” he said.

French utility EDF was awarded a contract which guarantees the new Hinkley C nuclear power station will get a price of £92.50 (€106.58) per pounds-megawatt hour (MWh) for the electricity it produces.

That is more than double the current wholesale price of electricity.

The cost of producing electricity from wind farms off the coast of the UK has already fallen 32% in the past four years.

The costs have averaged around £97 per MWh in the 2015-2016 financial year, an industry report said earlier this year. n Reuters

© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

Related Articles

New statutory wind farm design guide expected in early 2018

More in this Section

EC must clarify its tax proposals

EU data regulation ‘an opportunity’

CRH: Construction sector needs to evolve

Freshly Chopped eyeing further Cork expansion


Breaking Stories

US stock indexes hold steady as oil's dismal week eases

EU leaders vote to extend sanctions on Russia over Ukraine conflict

KBC Bank Ireland CEO claims Govt's help-to-buy scheme has made things worse

Study finds sharp rise in cyber attacks on firms

Lifestyle

Author describes what it's like when a man becomes a woman

Seeing is believing for Star Wars: Episode IX director Colin Trevorrow

Rocket Man blasts off to another galaxy at Marquee

Elizabeth Moss is on top of her game with 'The Handmaid's Tale' and 'Top Of The Lake'

More From The Irish Examiner