Offshore wind power generation has been doing very well in the UK, with around 14 Gigawatts (GW) of capacity now installed, and progress should continue, with Hornsea 4 getting the go ahead and Crown estate releasing 6 more offshore sites for development. There is the issue of how much of the profits from these projects King Charles should retain, but maybe more importantly, there are signs that the profitability of new projects may be falling due inflation. Vattenfall had won a contract for its Boreas project off Norfolk last year at a record low price of £37.35/MWh. But with gas and supply chain costs rising, the market has now changed, making it economically unviable at that price. The Swedish state-owned company said costs had climbed by 40% due to a rise in global gas prices which have fed through to the cost manufacturing, putting ‘significant pressure on all new offshore wind projects’. Jess Ralston, the head of energy at the thinktank the Energy and Climate Intel...
Weekly update to Renew On Line bimonthly newsletter: https://renewnatta.wordpress.com