- A new Aurora Energy Research report, commissioned by RenewableUK, emphasises the crucial role of offshore wind in safeguarding energy consumers against gas price volatility.
- The analysis underscores the necessity of government support for long-term growth in offshore wind. It finds the cost increase for consumers lower than with other low carbon tech investments.
- A Net Zero 2035 electricity system that was predominantly offshore wind powered could potentially translate into savings of approximately £68 per year for consumers versus a Net Zero system with no further CFD-backed offshore wind development, the report assesses.
OXFORD (AURORA ENERGY RESEARCH)—Aurora Energy Research, the leading global power analytics provider, has produced a RenewableUK-commissioned report on the impact of various levels of offshore wind on consumer bills in a Net Zero power sector for Great Britain, compared to other low-carbon technologies.
The report identifies additional offshore wind as a key pillar of a decarbonised GB power system. Renewables remain the lowest-cost forms of new electricity generation and, compared to gas generation, are less exposed to international price changes, offering greater energy independence.
Titled “Is offshore wind still good value for billpayers?”, the report comes as the Government is deciding on the final budget for this year’s renewable energy auction, Contracts for Difference (CFD) Allocation Round 7.
Aurora Energy Research modelled different energy system scenarios that the UK could hypothetically pursue by 2035. The analysis shows that options such as relying more heavily on foreign energy imports or generating high amounts of electricity using gas turbines increase the costs of running the system, compared to a high offshore wind system.
The analysis concluded that consumers could save around £68 a year with a Net Zero 2035 electricity system that was predominantly offshore wind powered versus a Net Zero system with no further CFD-backed offshore wind development.
Malavika Gode, Senior Associate, UK & Ireland Advisory, at Aurora Energy Research, stated:
“Based on the findings, the team at Aurora Energy Research found that additional offshore wind capacity is one of the key pillars of a decarbonised GB power system. A power system with a substantial amount of offshore wind can provide a buffer against global gas price volatility.”
Salman Khan, Principal, Advisory, at Aurora Energy Research, added:
“The study also found that the government support for offshore wind is important for its development in the long term and the consequential increase in consumer/system costs is comparatively low as compared to investing in other alternative low carbon technologies.”
RenewableUK’s Chief Executive Officer, Dan McGrail, said:
“This report shows that, even when you consider the additional costs of storing energy when the sun doesn’t shine and the wind doesn’t blow, shifting to an energy system dominated by offshore wind and renewables remains the best decision for billpayers.”
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ABOUT AURORA ENERGY RESEARCH
Established in 2013, Aurora Energy Research is a leading global provider of power market forecasting and analytics for critical investment and financing decisions. Headquartered in Oxford, we operate out of 14 offices worldwide covering Europe, North & South America, Asia, and Australia.
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ABOUT RenewableUK
RenewableUK’s members are building our future energy system, powered by clean electricity. We bring them together to deliver that future faster; a future which is better for industry, billpayers, and the environment. We support over 470 member companies to ensure increasing amounts of renewable electricity are deployed across the UK and to access export markets all over the world. Our members are business leaders, technology innovators, and expert thinkers from right across industry.
