Power Generation News – Late November 2023
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The price paid to generate electricity by offshore wind farms has been raised by 66% as the government tries to entice energy firms to invest. It comes after an auction for offshore wind projects failed to attract any bids, with firms arguing the price set for electricity generated was too low. The government has lifted the price it pays from £44 per MWh to £73.
It is hoped that more offshore wind capacity will lead to cheaper energy bills.
Companies have said that the cost of building wind farms has soared because of rising inflation and interest rates, while the maximum price they can charge for the electricity they generate has been relatively low.
Energy firms have told the BBC that electricity produced out at sea would remain cheaper and less prone to shock increases compared with power derived from gas-fired power stations.
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