Investorideas.com

Get great ideas from our AI, cannabis, cleantech, crypto, esports and mining podcasts - be a guest or sponsor : 800 665 0411


Share on StockTwits

Growing UK offshore wind becomes cheaper than nuclear and gas, expanding installations that might help the nation accomplish 2030 target, says GlobalData

 

August 10, 2020 (Investorideas.com Newswire) The Imperial College London conducted a study where it shows that the UK offshore wind generation costs have significantly declined in the last few years, tossing in the plausibility of the segment soon being subsidy negative as per their contract for difference (CfD). GlobalData anticipates that the declining costs not only make offshore wind a cost-effective and environment-friendly instrument for diminishing the country’s carbon footprint but also drive the government to build up installations, attempting to achieve its 2030 target.

Somik Das, Senior Power Analyst at GlobalData, comments: "With negative subsidy being a conceivable scenario, the share and the target of offshore wind capacity would likely be further elevated by the UK Government, which will be more interested in the segment than ever before. Elevating the target of 40GW of overall offshore capacity by 2030 would mean that more than 20% of the overall installed capacity would be shaped by the offshore segment, making it a more recognizable energy source on which the nation can rely for its electricity needs."

Offshore wind cfd prices are expected to decline and become cheaper than gas, where the price is expected to surpass £55/MWh by 2023-24. Major projects such as Doggerbank A and Doggerbank B are in the permitting phase and anticipated to come online by this time. These are key projects that saw success in the third round of CfD, held in 2019. With the next round planned to be held next year, projects coming up in the future stand a strong chance of experiencing negative subsidies.

Das concluded: "Over the next few years, the offshore segment is expected to boom. More than 19GW of offshore wind projects are in the pipeline, either in the nascent or advanced stages of development. Players such as SSE Renewables, Scottish Power Renewables, Orsted, Engie and many more have flocked this space, trying to grab a piece of the pie. Many would be constructed as deep sea projects at more than 40km from the shore, at depths ranging from 20-70m - making the most of favorable wind speeds of 7-10m/s. Some of them are expected to have turbine capacities of more than 10MW, and rotor diameters ranging from a mere 113m to over 200m.

For more information

To gain access to our latest press releases: GlobalData Media Centre

Analysts available for comment. Please contact the GlobalData Press Office:

EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
Email: pr@globaldata.com

Notes to Editors

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts

About GlobalData

4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make timelier and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.


RenewableEnergyStocks.com: investing ideas in renewable energy stocks

Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory

Get News Alerts on Renewable Energy Stocks



More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits