Ministers have announced the largest ever procurement of solar projects in the UK alongside new onshore wind farm developments and three new tidal energy projects.
Taken together with previous announcements on offshore wind results, the Government has estimated that the announcements since 2024 will deliver enough power for the equivalent of 16 million homes.
The “strike price” for the new onshore wind has been agreed at £72.24 per mega watt hour generated (/MWh) and new solar at £65.23/MWh. The new plans will support around 10,000 jobs.
A spokesperson for the End Fuel Poverty Coalition, commented:
“Households are still paying the price for years of exposure to volatile gas markets. Cheaper, homegrown renewables don’t just help the planet, they can help cut bills by pushing expensive electricity from gas-fired power stations off the system.
“A comparison with fossil fuel generated electricity puts into perspective the deal households get from renewables. Any new gas-fired power stations generate energy at close to £150 per megawatt hour, whereas the last offshore wind auction came in at around £90/MWh and today’s auction strike prices are even lower.
“But affordability must be guaranteed, not assumed. As more private investment flows into clean power, consumers need transparency on how these contracts affect bills, clear limits on profits and further electricity pricing reform so the benefits are passed on to households.”
The announcement comes after Ministers also confirmed £1bn in funding for new community energy projects which the End Fuel Poverty Coalition described as having “real potential to help bring down bills while keeping the benefits of clean power rooted in local places.”