The outcome of the latest UK Contract for Differences (CfD) auction announced by the Department for Business, Energy and Industrial Strategy, showed that offshore wind submitted record bids of £57.50 per megawatt hour including the costs of grid connection.
The winning offshore wind projects – DONG Energy’s Hornsea 2, Innogy and Statkraft’s Triton Knoll and EDPR and Engie’s Moray – will together provide 3.2 GW of new capacity to the UK. The cost of offshore wind has fallen by an average of 47% since the last CfD auctions results were announced in February 2015. These reductions are due to the rapidly maturing industry, technology development and economies of scale. The UK Government’s long-term commitment to offshore wind has also had a positive impact.