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

Speech-to-text Happy Scribe start-up firm expands

Framing the budget with little in the pocket

Brexit brings hidden bonus for some Irish exporters

US corporate tax may be cut to 20%


Breaking Stories

Emmanuel Macron calls for joint eurozone budget in plea for greater unity

Equifax boss ousted following data breach

JPMorgan Chase to create thousands of jobs in Poland

High income tax rate deterring companies from moving to Ireland, says Irish recruitment firm

Lifestyle

Coming to terms with a creeping killer in the blood

Skibbereen Eagle runs out Russians

Cork Folk Festival headliner Andy Irvine on the road again

Remembering Easter Rising hero Thomas Ashe 100 years on

More From The Irish Examiner