Data - UK wind electricity cheaper than nuclear

LONDON: The price of electricity from offshore wind in Britain has dipped below the level guaranteed to Hinkley Point, raising questions about the construction of the vast nuclear power station.

The Department for Business, Energy and Industrial Strategy disclosed on Monday the results of auctions for state subsidies for three new wind offshore farms.

Denmark’s DONG Energy won the auction to build Hornsea Two, which will become the world’s biggest offshore wind farm off the coast of Yorkshire in northern England.

Germany’s Innogy and Norway’s Statkraft won the auction for Triton Knoll off Lincolnshire in eastern England, while Moray in Scotland was won by a consortium comprising EDP Renovaveis of Portugal and ENGIE of France.

“The projects, which are set to generate over three gigawatts of electricity, enough to power 3.6 million homes, demonstrate that the UK continues to be an attractive place to invest in clean energy,” the department said in a statement.

The companies lodged bids for the so- called “strike price” they will be paid by the state for electricity generated, with the lowest amounts securing the deals. Those prices have tumbled to £ 74.75 ( RM443) per megawatt hour for projects deliverable in 2021/2022, and to £ 57.50 for projects due in 2022/2023.

The price of offshore wind has fallen far below that of nuclear, with the planned Hinkley Point C power plant in southwestern England having secured subsidies of £ 92.50 per megawatt hour.

The gigantic Hinkley project was awarded to a French-Chinese consortium – led by French giant EDF – last year but has been plagued by long delays and cost overruns.

However, the Nuclear Industry Association cautioned in another statement that “one technology alone can’t solve the UK’s power challenge”.

Wind and solar production have the drawback of being unpredictable, with countries needing to call on gas, coal or nuclear plants to raise output if there is no breeze or sun. — AFP