UK Government Announce 12 New Clean Energy Projects
New wind power projects that will be able to supply power to over 7mn homes were announced by the UK government on 20 September.
The government says that these wind farms will generate electricity without any requirement for government subsidies and these projects are a breakthrough for renewables as they will be launched at costs that are far lower than anticipated.
Although the environmental lobby has expressed delight with this news, concerns were still expressed about government ability to tackle the problems caused by cars, increased driving, and home heating.
The main reason for this concern is due to the fact that electricity use is only 15% of the average total for UK household energy consumption; far behind the consumption of gas, petrol, and diesel.
New Government Announcement
The companies taking on these offshore wind projects will need to complete their projects by 2025, and electricity provided by the cheapest of these will cost just £40 per MW (megawatt) hour.
This cost is far cheaper than the anticipated supply costs from the new nuclear plant, Hinkley Point C, which is expected to come in at £92.50 per MW hour. Hinkley Point is also scheduled to launch operations in 2025. The overall costs for offshore-generated energy have dropped by approximately 30% in recent years.
John Sauven is the Executive Director at Greenpeace, and he commented:
“Today’s news makes arguing for the massive public subsidies nuclear power requires a much harder task.”
What This Means
It’s anticipated that the total overall price for wholesale electricity is likely to be around £48.95 for the years 2023 and 2024, lifting to £52.36 per MW hour for 2026 and 2027.
The UK Prime Minister, Boris Johnson, commented:
“The UK is leading the way in the fight against climate change, and it’s great news that millions more homes will be powered by clean energy at record low prices. Seizing the opportunities of clean energy not only helps to protect our planet, but will also back businesses and boost jobs.”
Both renewable energy electricity generation and nuclear energy generation are the way ahead for the electricity sector; however many experts feel that this de-carbonisation of the sector will be the easiest part of any action to tackle climate change. Acting to curb emissions from homes and transportation is likely to prove far more difficult.
Investors looking to profit from ethical investments in renewable energy projects can find all the details of the companies carrying out these wind farm projects on the UK government website.