Offshore Wind Prices In The UK Are Lower Than Nuclear Power For The First Time

- Sep 20, 2017-

China energy storage net news: on September 11, the BBC news that British business strategy, energy and industry has reported that due to a number of effective policy implementation, the latest auction prices are low to offshore wind, of 57.5 pounds per megawatt hour, half lower than in 2015, for the first time below the nuclear power, marked the British energy revolution took an important step forward.

Britain has approved 11 new energy projects that could meet the energy needs of 3.6 million homes.The projects will help Britain meet its energy supply, support renewable energy industries, increase employment and are part of the government's industrial strategy and low-carbon energy growth plan.

Among them, the newly approved wind power project will be powered by 2022 to 2023, and the price will be as low as 57.5 pounds per megawatt, which is 50 percent lower than the price of the bidding project in 2015."The offshore wind projects will complete 17.5 billion pounds of investment by 2021 and create thousands of jobs.""Said Rid Harrington, UK minister for business, energy and industry strategy.

It is understood that in some parts of Britain, offshore wind and solar power price and gas already, thanks to the government to implement the various policies and measures to reduce costs, such as support of emerging enterprises, stimulate the enterprise scale of wind energy and requires companies to participate in bidding for government subsidies.The UK's auction policy stipulates that offshore wind companies must bid for the lowest cost of subsidies in order to win the bid.Incentives for offshore wind companies, spurred by this policy, require less and less subsidy.

Michael grubb, professor of energy at London university, said the fall in wind prices was "an important step forward for the UK energy revolution".In the UK, wind power is the most important new source of energy and the price has fallen to acceptable levels, which is of great significance to the transition from traditional energy to clean energy.Currently, about 2 per cent of the UK's electricity comes from wind power, and the cost per head is just 5 pounds per year.

"The success of offshore wind in the UK is certainly encouraged by falling costs and a downward trend in subsidies in other European countries," said Robert Marsh of Norton Rose Fulbright, a law firm.

"The most cost-competitive technology of the renewable energy era is coming.""Renewable energy technologies tend to be mature and cheap," says Cornwall Insight energy analysts.

The sharp decline in offshore wind power has become a new turning point in the UK's green technology revolution, but it is also putting pressure on Britain's nuclear power, the guardian wrote.

Industry insiders say a sharp fall in wind prices would be a huge boost to the UK's new energy industry, but it would be a strong contender for the nuclear industry.Offshore wind prices are at 57.5 pounds per megawatt hour, down from 92.50 per megawatt hour at hinkley point C.

"A massive offshore wind price reduction is a huge boost for the renewables sector, but it will also affect the nuclear industry," said Caroline Lucas, the party's leader.The green alliance, a British political intelligence group, says the nuclear industry must cut costs, and coal-fired power stations need to install carbon capture and storage (CCS) to compete with low-cost offshore wind power.

But nuclear power companies believe that nuclear power is still an essential source of clean energy for the UK because of the gap between wind energy and the cost pressures to store excess electricity.

Rolls-Royce says that in the UK, the cost of generating electricity in small nuclear projects is similar to that of the sea.The UK needs to invest in new capacity to replace old coal-fired power stations and nuclear power plants that were shut down in the 2020s, but the cost of large nuclear projects has led to delays or difficulties.

A decline in offshore wind costs would also help the UK meet its emissions targets as soon as possible, the guardian said.The UK plans to cut its greenhouse gas emissions by 80 per cent from 1990 levels by the end of 2050.The latest "carbon budget" sets a cap on emissions between 2028 and 2032, requiring a 57 per cent reduction in emissions by 2030.

But the worry is that the UK has not worked out a clean power growth plan to consider a lower cost of wind power.Onshore wind power has been put on hold;The latest round of offshore wind contract costs less than two-thirds of the budget;The last solar power auction was in 2015.To this, the Liberal Democrat leader Vince Cable, said the change should be prompted people to reflect on the government's energy plan, cost of offshore wind sharp decline is very encouraging, but also indicates the need to reassess the clean energy situation.

Other experts warn that the UK's clean energy investment climate is worrying.Under the current plan, the cost of nuclear power will be five times that of offshore wind power by 2025.The UK government is considering nuclear energy cooperation with Chinese, Japanese and Korean companies, and Asia could become an important partner once it leaves the eu.