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Policy & Regulation

UK auction signals future boost to offshore wind

With the roll-out of offshore wind projects in the UK beating expectations, gas may face a challenge to its profitability in the long run With the roll-out of offshore wind projects in the UK beating expectations, gas may face a challenge to its profitability in the long run.
By Andreas Walstad 23 September 2019 Europe & Russia / Policy & Regulation 0 34611
The UK's Lynn and Inner Dowsing wind farms. (Centrica)

Recent auctions for offshore wind projects in the UK and France show the cost of this once-expensive technology is falling fast. In an auction for wind capacity on Friday the UK saw bids for contracts for difference (CFDs) – a 15-year price guarantee – of as low as £39.65/MWh ($49/MWh), which is below current market prices for electricity. No bids were recorded above £42/MWh.

In the last auction round, which was in 2017, bids averaged £57.50/MWh, while in 2015 they were as high...