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Lower Energy Bills Will Be Delivered Through Offshore Wind Projects

  • Publish Date: Posted over 7 years ago

Huge McNeal, the CEO of RenewableUK, has said that lower energy bills will be delivered to British customers through offshore wind energy projects rather than the new wave of nuclear power stations.

In an interview with the Guardian, Mr McNeal said that he expected the owners of offshore wind projects to secure payment purchase price deals that were lower than the price agreed for the Hinkley Point C nuclear power plant, which is £92.50 per MwH.

The Value of Government Subsidies

The bidding process is directed towards a government subsidy pot worth £290 million a year in total as part of the contracts for difference (CfD) scheme. This gives energy producers a set and guaranteed price for electricity production above wholesale prices. The EDF deal for the Hinkley plant will last for 35 years.

McNeal is positive about the future of offshore wind, believing that it has a healthy future regardless of the political party in charge.

Offshore and onshore windfarm builds in Britain represented £11 billion of renewable energy investment last year and almost 50pc of the year's total financial activity across Europe for new wind capacity.

Positive Figures for Green Energy

The industry has also been helped by new figures that show how offshore wind power prices have plummeted by nearly 33pc since 2020 to just £100 MWh. This is a key milestone, as the government has agreed to only continue with its subsidised payments for wind if the cost of the underpinning technology continues to come down.

A Warning to the Government

However, McNeal warned the government that its decision to prematurely end subsidies for onshore wind had hit the industry hard, with activity for on-land turbine building expected to stop almost completely after 2018.