Labour says offshore wind expansion will bring down bills

The UK awarded 8.4GW in its largest offshore wind auction, which the government says could power about 12 million homes and secure an average price of £90.91/MWh; critics warn taxpayer-backed guarantees and grid limits could raise household levies in coming years.

The government has announced the UK’s largest-ever offshore wind expansion after an auction that secured 8.4 gigawatts of capacity. Officials said the new capacity could power the equivalent of about 12 million homes and reported an average auction price of £90.91 per megawatt hour. Energy Secretary Ed Miliband described the results as a significant step toward clean power by 2030 and said the auction could unlock around £22 billion in private investment and support about 7,000 jobs. Opponents and campaigners raised concerns about upfront costs being passed to consumers and the electricity system’s ability to integrate the additional output. Key points: - The auction awarded 8.4GW of offshore wind capacity and included large projects such as Dogger Bank South, Norfolk Vanguard and Berwick Bank. - The government reported the average secured price at £90.91/MWh and said this was about 40% cheaper than building and operating a new gas plant. - Officials said the capacity equates to roughly 12 million homes and could attract about £22 billion in private investment while supporting around 7,000 jobs. - Critics warned that taxpayer-backed guarantees for generators mean levies on bills could rise, with some estimates putting annual levies near £1.8 billion once projects start generating around 2030. - Concerns were also raised about grid capacity and occasions when operators might be paid to curtail output if the system cannot absorb additional generation. - The article notes the biggest winner in the round was named as the German energy company RWE. Summary: The auction substantially increases planned offshore wind capacity and is presented by ministers as a step toward lowering wholesale costs and reducing reliance on imported gas. Debate continues over how upfront subsidies, long-term contracts and grid integration will affect household bills and system operation. Many winning projects aim to begin generating around 2030 and contracts run for extended terms. Undetermined at this time