National Infrastructure Commission
Falling price of renewables shows a low-carbon future can be low-cost
The government has announced that twelve new renewable energy projects have won Contracts for Difference (CfD) – with some offshore wind schemes being delivered for as low as £39.65/MWh.
It reveals a dramatic fall in the cost of offshore wind, with the strike price representing a 30% reduction on the lowest from the second CfD auction in 2017, when projects came forward at £57.50/MWh.
The results also mark the first time that large scale renewables are expected to come online below market prices and without additional subsidy on bills.
The new projects are expected to provide Britain with around 6GW of capacity, generating enough clean energy to power over seven million homes by 2025.
Responding to the announcement, a National Infrastructure Commission spokesperson recently (20 September 2019) said:
“Today’s results are a triumph for green energy and provide further evidence that a low-carbon future can be low-cost.
“In our National Infrastructure Assessment, we have set out a costed and achievable plan for transitioning to a highly renewable generation mix – a move that will be crucial if the UK is to reach its net zero emissions target by 2050.
“This will also require us to harness the potential of a range of renewable technologies. The government should build on the success of offshore wind in its forthcoming National Infrastructure Strategy by leveling the playing field for onshore wind and solar.”
Details of the National Infrastructure Assessment and its recommendations on energy can be found here.
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