Auctions to Provide Major Green Electricity Boost

WORLD leading competitive auctions have led to contracts being offered to 27 renewable electricity projects, which together could power 1.4m homes in the UK.

The green energy auction has driven down prices, by as much as 58% for one technology. The projects will lead to the UK emitting 4m fewer tonnes of CO2 into the atmosphere each year. That’s the equivalent CO2 savings of taking up to 2 million cars off the UK’s roads.

The auctions have successfully led to over £315m of new contracts being offered to five renewable technologies, some more established like onshore wind and solar, and also less established technologies such as offshore wind, which is seeing its costs fall as the industry grows. The contracts being offered include two offshore wind farms, which could deliver over 1.1GW of new capacity, 15 onshore wind projects and 5 solar projects. In total, over 2GW of new capacity could be built, costing £110m per year less than it would have without competition.

The UK’s Energy & Climate Change Secretary, Ed Davey said: “This world leading auction has delivered contracts for renewables projects right across the UK. “These projects could power 1.4 million homes, create thousands of green jobs and give a massive boost to home-grown energy while reducing our reliance on volatile foreign markets.

“The auction has driven down prices and secured the best possible deal for this new clean, green energy.”

Only the most price competitive projects received contract offers – helping to drive down the cost of renewables support. As a result, consumers are getting more for their money, with around 550MW more capacity than could have been funded without competition. All technologies apart from energy from waste cleared significantly below the maximum prices per megawatt hour (MWh), known as strike prices, showing competition has delivered better value for consumers. The clearing price for solar came in at up to 58% lower than the price would have been without competition, offshore wind at up to 18% lower and onshore wind at up to 17%.

Picture of the Ardrossan Wind Farm by Vincent van Zeijst reproduced under CCL.

Monday 2nd March 2015

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