The results of the latest Contracts for Difference (CfD) allocation round have shown that offshore wind has now become the cheapest source of electricity in the UK, RenewableUK said.
RenewableUK estimates that the 5.5GW of offshore wind projects selected in the CfD Allocation Round 3 will support over 7,000 jobs on the six projects and throughout the UK supply chain.
These wind farms will bring up to GBP 12.8 billion of investment to the UK, particularly boosting the economies of coastal communities where these projects will be built and operated.
The auction secured new offshore wind capacity at a record low price of GBP 39.65/MWh in 2012 prices, a reduction of 66% compared to the price of the first CfD auction in 2015.
These offshore wind projects will be built between 2023 and 2025 and are expected to generate 28 terawatt hours of power each year.
“As these results show, offshore wind is the key technology for this country in tackling the climate emergency. Offshore wind will be the backbone of the UK’s clean, modern energy system and will supply at least a third of our power by 2030,” Hugh McNeal , RenewableUK’s Chief Executive, said.
”These projects will provide cheap power to consumers and businesses for decades to come. Today marks a new era of cheap power, as the cost of offshore wind is now lower than the expected market price for power. Reaching that ‘zero-subsidy’ level is made possible by the certainty these long-term contracts provide.”
The offshore wind projects that secured contracts in the auction round are Seagreen, Dogger Bank Teesside A, Dogger Bank Creyke Beck A, Dogger Bank Cryeke Beck B, Sofia, and Forthwind.