Aurora Energy Research has produced a report commissioned by RenewableUK on the impact of different levels of offshore wind on consumer bills in a Net Zero energy sector for Britain, compared to other low-carbon technologies.
The work identifies additional offshore wind as a key pillar of a decarbonised British electricity system. Renewables remain the cheapest ways to generate electricity and, compared to gas generation, are less exposed to changes in international prices, therefore offering greater energy independence.
The report, titled “Is offshore wind still profitable for taxpayers?”, comes at a time when the Government is deciding the final budget for this year’s renewable energy auction, Round 7 of Contract Allocation Difference (CFD).
Aurora Energy Research has modeled different energy system scenarios that the UK could hypothetically follow in 2035. The analysis shows that options such as relying more on foreign energy imports or generating large amounts of electricity through gas turbines increase running costs of the system, compared to an elevated offshore wind system.
The analysis concludes that consumers could save around £68 a year with a Net Zero 2035 predominantly offshore wind electricity system versus a Net Zero system with no further CFD-supported offshore wind development.
