Record low prices will save consumers 拢58 a year compared to the cost of power generated from gas, according to trade body Renewable海角视频.
The auction process, revealed on Thursday, has secured 10.8 GW of green energy - almost the same as the previous three rounds combined. It amounts to 14 per cent of the 海角视频鈥檚 total current electricity capacity.
Nearly two-thirds of this will be new offshore wind as five projects secured 7GW of new capacity, with Renewable 海角视频 saying it was 鈥渄emonstrating that this technology is central to the 海角视频鈥檚 transition to clean power鈥.
Read more:脴rsted's Hornsea Three leads the way as 93 projects secure backing in fourth renewable auction
At 拢37.35 per megawatt hour it is the lowest cost of all renewable technologies, and significantly cheaper than the current cost of electricity, which has been trading at over 拢150/MWh for much of this year.
Renewable海角视频鈥檚 deputy chief executive, and recently named Humber Renewables Champion, Melanie Onn, said: 鈥淭he cost of living crisis and the war in Ukraine have pushed affordability and energy security to the top of everyone鈥檚 agenda, with billpayers desperate for relief from fossil fuel price hikes. Today鈥檚 record-breaking auction results show that there is a way to replace unaffordable gas with low-cost clean power generated by a wide range of renewable technologies led by wind, both offshore and onshore. Thanks to the rapid construction times of renewables, billpayers will start to feel the benefits of today鈥檚 auction next year.
鈥淭he auction also showed that the 海角视频 is maintaining its position as a world-leader in innovative renewable energy technologies like tidal stream and floating wind, which will both play an increasingly significant role in our transition to clean power to meet our net zero goal.
鈥淭o achieve this, we need to replicate the success of this auction in every subsequent annual allocation round to attract the 拢175 billion of private investment in wind needed to achieve the Government鈥檚 2030 targets. So it鈥檚 important that we get details of the next round as soon as possible so that developers can get projects ready for next year鈥檚 auction.
鈥淩enewables are two to three times cheaper than the alternatives and these prices provide great value to consumers, especially in light of the impacts of inflation and global commodity costs, like steel, on the industry. The CfD has delivered a huge amount of new clean energy capacity. Now we need to see an evolution in the way contracts are awarded so that we can secure the massive supply chain and project investment needed for 2030 and beyond, as well as low and stable electricity prices for billpayers. The prize is huge: offshore wind alone is set to employ 100,000 people in the 海角视频 by the end of the decade.
鈥淲orking closely with Government, we need to make this country the most attractive place to invest in. This is particularly important if we want to develop our supply chain in new technologies like floating wind, tidal stream and green hydrogen, in which we can lead the global market and seize the export opportunities this offers.鈥
Onshore wind competed in the auction for the first time since 2015, after a long-running campaign by Renewable海角视频 to end its exclusion from the competitive process. It proved it is one of the cheapest ways to generate new power, with strike prices at 拢42.47.
With a quicker lead time projects will start generating within two years.
A total of 16 onshore wind projects won contracts, all of which are in Scotland, representing a total of 1.5GW. The allocation round saw 44 solar projects included, adding a further 2.2GW.
Energy Minister Greg Hands said: 鈥淭his fourth round shows the government鈥檚 Contracts for Difference scheme continues to be a roaring success.
鈥淣ot only has it secured a record capacity of clean electricity, it ensures the 海角视频 will have a future powered by a resilient and diverse supply of homegrown energy by bringing forward a greater range of renewable technologies than ever before.鈥
