This week UK offshore power prices have been cut in half in less than three years. Eleven new electricity projects, totalling more than 3 gigawatts were awarded contracts by the UK Government in the second round of the CfD auctions.
Amongst the contracts, DONG Energy will deliver its Hornsea Two project with capacity of 1,386.00 MW for the low price of 57.50 £/MWh. It is expected to be delivered in 2022/23 and be the largest offshore site in the world.
EDP Renovaveis (EDPR) and ENGIE, through their joint venture Moray Offshore Windfarm (East) have also been awarded their 950.00 MW offshore wind farm for 57.50 £/MWh. The project is expected to be commissioned in 2022/2023.
Additionally, Innogy and Statkraft has secured support to build the Triton Knoll offshore project for 74.75 £/MWh. Triton Knoll will be built in three phases; with delivery for phase 1 expected in 2021/22. The completed farm will have the capacity of 860.00 MW.
UK minister for energy and industry, Richard Harrington, said: “The offshore wind sector alone will invest £17.5bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today.
“This government will continue to seize these opportunities as the world moves towards a low carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan,” he added.
“The latest renewables auction show huge price reductions across the board, with offshore wind, energy from waste and biomass clearing at prices from £57.50-£74.75,” added James Court, Head of Policy and External Affairs at the Renewable Energy Association. “These results show that renewables are now the most cost effective form of any energy generation which can future proof both the UK grid and provide sustainable new jobs in the UK.
“Offshore wind’s success shows what can happen with government support, and consider that this auction was for so called ‘less established’ technologies, with the more mature onshore wind and solar blocked to market. Surely now is the time for the government to commit to a low carbon industrial strategy.”