Comment on Contract for Difference auction results

Commenting on the Contract for Difference (CFD) auction results published today, Dr Jonathan Marshall, energy analyst at the Energy and Climate Intelligence Unit, said: 

Offshore Wind Farm Sheringham Shoal By Statkraft

New offshore wind projects will be delivered as low as £58/MWh from 2022-23. Image: Statkraft, creative commons licence

“Having put the groundwork in, the UK is now poised to reap the rewards from unprecedented falls in costs in offshore wind. These latest results show that offshore wind is no longer an expensive technology. It is much cheaper than new nuclear reactors, is heading for cost parity with the cheapest technologies, and with an increasingly UK-based supply chain.

“With an expanse of shallow waters surrounding us, the UK now has the chance to consolidate our position as the European champion of offshore wind. However, to garner the full benefits of this revolution, the government should continue to boost smart and flexible technologies that keep the lights on when the wind doesn’t blow and allow consumers maximum control over their energy bills.

“In addition to offering a saving of up to £8 billion a year from national energy bills, accelerating progress towards a smart grid will allow us to cut carbon emissions while maintaining the reliable electricity system we are accustomed to."