New projects agreed

Low cost clean energy boost for seven million households

Claire Mack

Claire Mack: ‘more value for consumers’ (pic: Terry Murden)

Twelve new renewable energy projects, half of them in Scotland, will be powering over seven million homes at record low prices following a new deal announced by the UK government.

The new onshore and offshore wind farms will provide around 6GW of capacity – 2.4GW more than the last round two years ago.

For the first time renewables are expected to come online below market prices and without additional subsidy on bills, promising a better deal for consumers.

Scottish Energy Minister Paul Wheelhouse today welcomed the deal but questioned why the bulk of the capacity will be generated in England and whether early stage technologies such as floating wind, wave and tidal developers are failing to get equal treatment.

The costs of offshore wind are now about 30% lower than at the time of an auction held in 2017, with projects now being delivered for as low as £39.65/MWh. This compares to power from Hinkley Point C – the new nuclear power station in Somerset also due to open in 2025 -– which is expected to cost £92.50/MWh.

According to research by RenewableUK, the new projects could see 8,000 jobs created.

The announcement offers a guaranteed price to firms willing to take the risk of installing costly offshore wind turbines in projects set to be delivered by 2025.

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