Offshore wind has dominated the third UK Contracts for Difference auction, with 5.5GW of projects securing support starting as low as £39.65 per megawatt-hour.
Six offshore wind farms have been selected at prices 30% lower than the last CfD auction, which was held in 2017.
UK Energy Department BEIS said the results show that for the first time renewables are expected to come online below market prices and without additional subsidy on bills.
SSE Renewables and Equinor have secured support at £39.65/MWh, £41.61/MWh and £41.61/MWh for the Dogger Bank Creyke Beck A, Creyke Beck B and Teesside A projects, respectively.
SSE has meanwhile bagged a CfD of £41.61/MWh for 454MW at its Seagreen 1 project off Scotland.
Innogy has won with its 1.4GW Sofia project in the Dogger Bank at £39.65/MWh. The 12MW Forthwind demo off Scotland has also secured support at £39.65/MWh.
Elsewhere, over 250MW of remote island wind has been awarded CfDs, including Ulisenis Power at £39.65 for the 189MW Muaitheabhal remote island wind project.
Some 34MW of Advanced Conversion Technologies have also secured support.
In total, 12 new renewables projects have won CfDs. All capacity is due online by 2025.
UK Energy Department BEIS said the outcome will see up to 8000 jobs created in offshore wind.
UK Prime Minister Boris Johnson said: “The UK is leading the way in the fight against climate change, and it’s great news that millions more homes will be powered by clean energy at record low prices.
“Seizing the opportunities of clean energy not only helps to protect our planet, but will also back businesses and boost jobs across the UK.”
Energy and Clean Growth Minister Kwasi Kwarteng added: “Offshore wind is a British success story, with new projects at record low prices creating new opportunities for jobs and economic growth as we leave the EU.
“The support we’re announcing today will mean that over 7 million more homes will be powered by renewable energy as we decarbonise our energy system – crucial as we continue on the road to net zero emissions by 2050.”
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