By bizn_fun 
Like many sectors, the offshore wind industry has been hit by rising costs over the past few years.
This is linked to factors like global supply chain pressures, increased steel costs and high interest rates, partly the result of the Russia-Ukraine war.
Last year, energy company Orsted decided to “discontinue” one of the country’s biggest wind projects, Hornsea 4, despite it previously being awarded a contract.
In this latest auction, traditional offshore wind projects – those fixed to the seabed – have been awarded an average fixed price of nearly £91 per megawatt-hour of electricity generated, in 2024 prices.
While that is down considerably from the first auction in 2015, it is up from the £82/MWh awarded at the last auction for new-build projects in 2024, also in 2024 prices.
The government acknowledges the rising cost of offshore wind, but argues that it should be compared with the cost of new gas power plants.
Its figures suggest that building and fuelling new gas plants would cost £147/MWh, including a carbon price – a charge for emissions.
Energy Secretary Ed Miliband said: “With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators.”
The Conservatives have been asked for comment, but have previously warned that the government risks locking in high offshore wind prices for decades.
Reform has also repeatedly attacked the cost of net zero, but the Lib Dems and Greens both support the expansion of renewables to tackle the threat of climate change and boost green jobs.
SNP and Plaid Cymru also support the growth of offshore wind, but argue Scotland and Wales should have control of their energy resources.