As announced by the UK Department of Business, Energy & Industrial Strategy on September 11th, the projects will receive the following guaranteed price per MWh:
- Triton Knoll (innogy 50%, Statkraft 50%), - 74.75 GBP,
- Hornsea Project 2 (DONG 100%) – 57.50 GBP,
- Moray East (EDP 77%, Engie 23%) – 57.50 GBP.
The announced offshore wind prices are significantly cheaper than the cost of the 35-year contracts for new nuclear power of £92.50 per megawatt hour, and cheaper than the levelised cost of gas.
According to the UK Government Department, the cost of offshore wind projects are now 50% lower than the first auction held in 2015, when comparing the lowest clearing price for successful offshore wind projects commissioning in 2018/19 and the lowest clearing price for offshore wind projects commissioning in 2022/23. These reductions are due to the rapidly maturing industry, technology development and economies of scale. The UK Government’s long-term commitment to offshore wind has also had a positive impact. The new projects will provide a welcome stimulus to the offshore wind industry, creating investment and supporting high-skilled jobs in the UK.
The winning projects will receive the respective remuneration for a period of 15 years. The payments include the costs for the construction of the grid connections, which in the UK are financed by the project operators/developers. The first projects are set to be commissioned in 2022/23.
Press release UK Department of Business, Energy & Industrial Strategy