The most popular British offshore wind power cost

2022-08-02
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The cost of offshore wind power in the UK is halved. The government says that it will not affect the nuclear power plant plan. The auction price of offshore wind power contracts in the UK has not only hit a new low in history, but also is lower than that of nuclear power for the first time. On the one hand, it symbolizes that the green power transformation policy in the UK is effective, on the other hand, it also raises local doubts about the construction of large nuclear power plants, bringing great pressure to British nuclear power. However, according to GTM, the British government has confirmed that offshore wind power will not change the UK's nuclear program. A spokesman for the British Department of Commerce, energy and industrial strategy (beis) stressed that the country needs a diversified energy structure to ensure that energy demand can always be met

the British government began to reform the domestic power market a few years ago, including the use of contracts for difference (CFD) mechanism instead of direct subsidies to help boost renewable energy. Within the 15 year period of the contract for difference, the government will pay a fixed base price to renewable energy facility operators no matter how the actual wholesale price of electricity changes, but only the enterprises that apply for the lowest subsidy fees can win the bidding. However, for operators, this can still eliminate many uncertainties when investing in relatively new and expensive technologies (such as offshore wind power). With the government's subsidies and the electricity market, they believe that they can finally recover costs

since the implementation of the contract for difference mechanism for two and a half years, the cost of offshore wind power in the UK has dropped at an astonishing rate. The Department of Commerce, energy and industrial strategy released a report in early September. The auction price of offshore wind power reached £ 57.5/MWh, 50% lower than the first auction in 2015, which made the equipment more humanized, representing a half reduction in the cost of wind power subsidies by the British government, The 11 new renewable energy projects will be able to meet the electricity demand of 3.6 million households. On the one hand, it also shows that the British government's investment in renewable energy is effective

as for the new Hinkley point c nuclear power plant that the UK started to build last year, its equivalent contract price was about 93 pounds/MWh. After the auction report was released, some people questioned whether it was necessary for the government to spend high subsidies to build a nuclear power plant

however, nuclear power enterprises believe that nuclear power is still an indispensable energy in Britain, and the government's announcement may seriously mislead consumers. Due to the gap problem of wind energy and the cost pressure of storing excess power, unless the government confirms that the 3.6 million households can tolerate the problem that there may be no power without wind, the government is just cheating. Eiug (energy intensive user group) said that the auction price did not disclose all the additional costs that consumers would incur if they relied on "indirect power generation", including power balance and power storage

the price change-over switch of the auction of offshore wind power should be turned to the loading file, which seems to have dealt a head-on blow to a part of the selective enhancement component of nuclear power, and caused a lot of speculation from the outside world. Jason design, the author of GTM, wrote that the spokesman of the British business, energy industrial strategy (beis) came forward to gently emphasize that the country still needs a diversified energy structure, To ensure that electricity demand can always be met, nuclear energy and renewable energy will play an important role together in the next few years

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