A study has analysed offshore wind projects in 5 countries – the UK, Germany, Denmark, the Netherlands and Belgium – to show that wind farms due to be built after 2020 are converging towards a range of €50-70/MWh. It wasn’t long ago that such low prices were only predicted for 2050, say Iegor Riepin, Felix Müsgens (Brandenburg University of Technology), Malte Jansen and Iain Staffell (Imperial College London), writing for Carbon Brief. To make their price calculations meaningful their study required them to “harmonise” the very different offshore wind auction rules applied by each country, encompassing issues like subsidies, contract type and length, and grid connection costs. The authors also looked closely at the two other factors critical to offshore wind’s prospects: integration costs and future wholesale electricity prices. One of their many conclusions is that the remarkable consistency of cost decline, despite varying site conditions, auction criteria and levels of competition, is a sign that the auction model is working.
Energy Post 1st Sept 2020 read more »