Energy from offshore wind in the UK will soon be cheaper by half to under £58 for every megawatt-hour of electricity produced, lower than experts' estimates. This is according to UK government's latest auction for support contracts.
 The lower costs will allow more wind farms to apply for the £294m funding pot, which brings a total investment of £17.5bn into the UK. The total investment value is higher than the £11bn predicted by Renewable UK recently.
For the first time ever in the UK, energy from offshore wind farms will be cheaper than the new nuclear power. The new Hinkley Point C nuclear plant will cost £92.50 per megawatt hour.
"We knew today’s results would be impressive, but these are astounding," said Hugh McNeal, chief executive of Renewable UK. "Record-breaking cost reductions like the ones achieved by offshore wind are unprecedented for large energy infrastructure."
UK goverment estimates this latest figure as a result of the auction will save consumers £528m a year.
Richard Harrington, minister for energy and industry, said: "This investment will help the UK meet its climate targets while supporting jobs in Britain’s growing renewable industry. The UK has the largest offshore wind capacity in the world and low carbon businesses have a combined turnover of £43bn, employing 234,000 people."
The government contracts will grant offshore wind developers, including Dong Energy and Engie, a guaranteed revenue of just £57.50 per megawatt-hour of electricity produced in 2022/23. This is a huge drop from the £74.75/MWh granted to Innogy and Statkraft’s Triton Knoll project, which will start up just one year earlier.
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