UK announces new wind energy prices

UK: The UK government has announced the "strike prices" for onshore and offshore wind generation up until 2019.

The UK Department of Energy and Climate Change (Decc) announced the prices as part of an effort to remove uncertainty for investors.

The prices are largely in line with the current renewables obligation, with offshore wind priced at £155/MWh (EUR 183/MWh) and onshore at £100/MWh up until 2016/17.

Prices will decline from 2017-19 as a result of falling technology costs. By 2019 offshore will cost £135/MWh and onshore £95/MWh.

The UK is developing the 33GW Round 3 programme, the largest offshore development in the world. However, many manufacturers have been reluctant to invest amid uncertainty about UK energy policy and the upcoming UK energy bill.  

Speaking about the announcement, UK energy minister Ed Davey said: "Developers have been crying out for more details, sooner, and that is what we are giving them today."

The scheme is part of the UK government's Contracts for Difference programme that will form part of the upcoming energy bill.

Davey added: "Our reforms will renew our electricity supply, attracting up to £110 billion investment in a mix of clean, secure power and demand reduction, and will support up to 250,000 jobs up and down the supply chain."