Latest Government figures, published by BEIS and National Grid, have shown that the price paid for electricity from offshore wind farms has dropped by more than 50% in just two years. Surpassing all expectations, Offshore wind is now the lowest cost option for large-scale, low-carbon power.
The UK’s offshore wind sector has transformed over the last decade. Government support, huge strides in home-grown innovation and increases in both turbine efficiency and blade sizes, have placed the UK as number one, globally, for installed capacity.
Wind turbines have more than doubled their power capacity since 2007. The current generation of 8MW turbines have 260 foot blades, spanning an area the size of the London Eye. With a single rotation, these blades generate enough energy to power a home for 24 hours. By the mid-2020s turbine capacities are set to double again, reaching 15MW. These advances in turbine technology are a big part of what has driven recent reductions in costs per megawatt hour.
Offshore wind farms can be built in just two or three years, minimising the risk of cost overruns and ensuring that technological advances are adopted quickly.
The sector is already delivering thousands of jobs in regions of the UK with some of the highest unemployment figures. UK offshore wind is also attracting billions in foreign investment, and securing hundreds of international contracts for British companies. Future growth potential is enormous as the global market is set to boom over the next decade.
The UK needs a growing supply of affordable and secure energy. At this record low price, offshore wind power is a great deal for UK energy.
Footage of actress Emma Thomson explaining the significance of this moment is available at https://we.tl/LPF4xnJ5zw
Matthew Wright, Managing Director for DONG Energy UK, said: “This is a breakthrough moment for offshore wind in the UK and a massive step forward for the industry. Not only will Hornsea Project Two provide low cost, clean energy to the UK, it will also deliver high quality jobs and another huge boost to the UK supply chain.
“Successive governments deserve great credit for providing the certainty for continued investment in offshore wind, enabling it to become the thriving renewable industry it is today. Costs are falling rapidly, long-term and highly-skilled jobs are being created across the North of England and the UK supply chain is going from strength to strength. We’re now really seeing the benefits of this commitment to offshore wind and there is still so much more to come. Indeed, it has the potential to play a key part in the realisation of the UK’s industrial strategy.”
Jonathan Cole, Managing Director for Offshore Wind at ScottishPower Renewables, said: “These ongoing cost reductions show that offshore wind is in pole position to be the foremost low carbon power source, with the UK as the global market leader. A strong offshore wind sector powers our economy with reliable and affordable clean power. It is creating highly-skilled jobs in industrial and coastal communities that will really benefit from such significant investments.”
Paul Cooley, SSE’s Director of Generation Development, said: “As a UK-based energy company, SSE is proud to be investing in much needed energy infrastructure that contributes to UK growth. With offshore wind becoming an affordable form of large-scale, low-carbon energy, we believe that the UK as a whole will benefit from these cost reductions.
“Investment in offshore wind creates opportunities to develop the wider UK supply chain and brings value to local economies and local communities. Already Beatrice Offshore Windfarm Limited has helped foster UK and Scottish supply chains for the offshore sector and has had a positive impact on local lives and livelihoods. We aim to deliver the same again through both the Dogger Bank and Seagreen offshore wind projects and hope that similar economic benefits will be replicated across the UK offshore wind industry.”
Piers Guy, UK Country Manager, Vattenfall, said: “We believe offshore wind has a big role to play in delivering low cost, competitive, fossil-fuel free power as the UK transitions to the smart, clean, cheap energy system of the future. Today’s auction result sees offshore wind continue on its dramatic cost reduction pathway, whilst providing great prospects for the tens of thousands of British workers in the industry. Vattenfall is investing in UK offshore wind for the long term and we are confident that our Norfolk Vanguard, Norfolk Boreas and Thanet Extension projects will be even more competitive than today’s successful projects.”
Hannah Martin, Head of Energy at Greenpeace UK, said: “This record breaking price drop from offshore wind marks a huge moment for the UK energy sector. The price of offshore wind power is 50% cheaper than just two years ago, this means we are witnessing a revolution in UK energy.
“Offshore wind already powers 4 million homes in the UK, and will power more than 8 million by 2020. It has also created jobs, regional development and export opportunities. And official polls show that 80% of people are in favour of offshore wind. The government needs to seize the opportunities of this great deal, which they themselves have helped to create.”
