Letter Auke Lont, CEO and President, Statnett, Oslo, Norway The decline in nuclear investment rightly raises questions about future energy priorities (” The UK must reassess its long-term energy plans”, editorial, November 14). Across Europe, a quiet revolution has taken place in electricity markets over the past year, which is worth reflecting on. Technological improvements and optimised supply chains have driven down the cost of wind power to levels where subsidies are no longer required. In the Nordics wind farm projects are now based on market prices or on power purchase agreements with a fixed price for 20 years of 3 to 3.5 euro cents per kilowatt hour. New mills are able to produce up to 4,300 full load hours a year. With these types of costs and availabilities new opportunities arise. Today, aluminium smelters and data centres are the new customers in the Nordic power market, while wind project developers increasingly often request connection to our grid. The customers lock in a significant part of their long-term power needs at a convenient level with no climate risk exposure. The developers are able to secure finance for their investments – power purchase agreements have taken over the role of subsidies.
FT 22nd Nov 2018 read more »