Great Britain's most competitive auction for renewable energy subsidies has awarded contracts to eight new offshore windfarms, enough to power 12 million homes. The government doubled funding to £22 billion, attracting bids for 8.4 gigawatts (GW) of capacity, including floating windfarms for deeper North Sea areas.
Energy Secretary Ed Miliband called it "a record-breaking 8.4GW of offshore wind" and "the largest amount procured in any auction ever in Britain or Europe." He said the price secured was 40% lower than building a new gas plant, adding that clean power would lower bills and create thousands of jobs.
German utility RWE won contracts for almost 7GW, including Dogger Bank South and Norfolk Vanguard. SSE secured a contract for the first phase of its Berwick Bank project off Scotland. Winning bid prices ranged from £89.49/MWh (Scotland) to £91.20/MWh (England and Wales), with floating windfarms at £216.49/MWh.
Experts say while prices are above the wholesale average of £81/MWh, increased wind power can reduce reliance on expensive gas, lowering bills. The government aims to quadruple offshore wind by 2030 to achieve a zero-carbon electricity system.
However, the GMB union's Andy Prendergast warned the "real litmus test" is whether promised jobs materialise, urging the government to onshore supply chains. Critics also note the need for similar auction results next year to meet the 43-50GW target.
