by: Rob Norris
New analysis by RenewableUK shows that wind farms awarded contracts over the last 7 years by the Government to generate clean power will save each household nearly £250 per year, compared to the cost of generating electricity from gas at this winter's prices.
Coinciding with Wind Energy Week 2022, the analysis shows that the 19 gigawatts (GW) of wind farm capacity which have won Contracts for Difference (CfDs) so far will generate 93 terawatt hours (TWh) by the time all these power stations come online in 2027. This represents 30% of annual UK electricity generation at present and is enough to power nearly 25 million homes a year.
Costs have fallen sharply over the past 7 years, with the latest round of offshore wind projects coming in 70% cheaper than those awarded contracts in 2015, making offshore wind the cheapest source of new power in the UK. Wind farms supported by CfDs will generate 93TWh at a total cost of £5bn. The equivalent cost of getting that electricity from gas would be around £26bn at current prices, so this represents a saving to consumers of over £20bn, with every UK household benefitting by £246 a year.
RenewableUK is urging the Government to accelerate the roll-out of new renewables to avoid future gas crises for consumers. The new figures come against the backdrop of the Energy Prices Bill which would cap companies' revenues, and which industry has warned is putting investment at risk. It could even distort energy markets by skewing incentives towards fossil fuels.
RenewableUK CEO Dan McGrail said: "Our analysis shows that the faster we can grow wind energy in the UK, the more consumers will save. To do that, we need a stable framework for investment so that companies are confident they will make a return. There is a global race for renewable investment and I want the UK to be the most attractive place in the world to invest in wind so that billpayers and the wider economy benefit fully from cheap, renewable power.
"Cross-party support has been central to the success of renewables over the past decade, and MPs can be confident that consumers are benefiting from CfDs for wind farms which have paid back over £500m in the last twelve months alone. Wind energy can cut bills for consumers quicker than other large-scale technologies and I look forward to working with Rishi Sunak so that industry can speed up the roll-out of cheaper, home-grown energy."
Notes:
- RenewableUK's members are building our future energy system, powered by clean electricity. We bring them together to deliver that future faster; a future which is better for industry, billpayers, and the environment. We support over 400 member companies to ensure increasing amounts of renewable electricity are deployed across the UK and to access export markets all over the world. Our members are business leaders, technology innovators, and expert thinkers from right across industry.
- RenewableUK's blog on Wind Energy Week 2022, "A Wind Energy Manifesto for the New Government," is available here.
For further information, please contact:
Luke Clark, Director of Strategic Communications 07875 704 032Luke.Clark@RenewableUK.com
Robert Norris, Head of Communications 07969 229 913 Robert.Norris@RenewableUK.com
