Offshore wind energy hits it big

Offshore wind energy hits it big

london array
London Array

The cost of creating energy from offshore wind farms in the United Kingdom has tumbled below the price that nuclear reactors charge.

Recognized data published on Monday said offshore wind projects that generate power in 2021-22 have been granted contracts at £74.75 per megawatt hour.

While those in 2022-23 were awarded deals for a subsidy of just £57.50.

That’s significantly under the £92.50 long term contracts granted to France’s EDF in 2012.This was to construct Hinkley Point C, Britain’s first brand new nuclear plant in over two decades.

UK’s wind power push

The UK is seeing a renewable energy renaissance period.

With the aid of tax assistance, offshore wind power is outpacing the price effectiveness of nuclear power.

Subsidies in the UK

Britain’s subsidies operate differently to direct subsidies.

Rather than providing instant cash to companies, the firms participate in an public auction. This is in order to bid on the lowest price at which they are able to sell their power.

This round of auctioning went to two organizations who offered £57.50 per MWh.

This particular bid is really a win for offshore wind power mainly because it signals a amazing change in the energy market of the UK.

Five years ago, the successful nuclear bid was worth £92.50 after adjustment for inflation.

Wind cheaper than nuclear

That signifies that offshore is less expensive than nuclear power. This is the for the very first time this has happened.

An auction in 2015 saw winning bids between £114 and £120 per megawatt-hour.

The most recent auction exhibits just how far sector has come in a short time.

However, the unique limits of wind power do not allow it to be a reliable resource for most the country’s demands.

Nuclear still needed

This shift may see nuclear require a backseat when it comes to new manufacturing.

However the UK has its work cut out.

It needs to recreate the energy produced by nuclear plants that are timetabled to go offline in the future.

There should be more assets targeted on developing reliable energy storage solutions.

A lot of renewable energy’s issues could be reduced if there was a fairly easy, large-scale way to save surplus energy in times of excess.

This could be used in the event the weather fails to produce ideal energy output conditions.

Smaller nuclear

Small-scale nuclear projects could deliver electricity to Britain for a similar cost as offshore wind, Rolls-Royce sai.

This would furnish an additional potential choice for a state struggling to initiate major nuclear projects up and running.

Britain needs to spend money on brand-new capacity to upgrade ageing coal and nuclear plants which are due to close in the 2020s.

Nevertheless the expenses concerned have seen big nuclear projects deferred or encounter problems.

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