I have always supported sourcing more of our energy from offshore wind. Offshore wind farms don't trash beautiful landscapes as onshore wind farms do. I thought the costs involved would fall over time. But I did not expect the rate at which the costs would fall to deliver the cfd (Contracts for Difference) prices announced yesterday. They were a real game changer. Worth looking at in detail.
The current market price of energy is around £53.50 per MWh (megawatt hour). Just 2yrs ago, offshore developers needed a guaranteed £117.14 per MWh to build offshore wind farms. Yesterday massive new projects in the North Sea were agreed at just £57.50 per MWh. Truly astonishing. And it's expected that prices will fall further. We expect battery technology to deliver more efficiency and lower costs, through reducing the negative impact of inconsistent generation. Development of non time-critical electricity users (electric cars) will also reduce costs.
Important to understand that no Government subsidy is involved. It's users of electricity that pay to guarantee the price. Yesterday's cfd auction prices are great news for electricity buyers into the furure.
I have no doubt that onshore wind farm generation will be lower than the current £52.50 per MWh price. And I've no doubt that some onshore development will happen, especially in Scotland, where opposition to trashing the landscape is less than elsewhere. Certainly a lot less than in Mid Wales. I did my utmost to stop the appalling Mid Wales Connection Project from going ahead - and will continue as long as I have breath in my body. The implications of this delelopment in Mid Wales are horrendous. Like pouring a bucket of tar on a painting by Sir Kyffin Williams. It would be utter madness when cost of offshore wind is dropping like a stone.