A new report has revealed the UK Government could power around 600,000 homes per year via onshore wind projects without the use of a subsidy.

The study, produced by industry experts Baringa Partners, stated the UK could deliver 1GW of new onshore wind capacity at no additional cost to consumers over and above the long-term wholesale price of power.

In addition, an auction for renewable projects to secure long-term contracts for clean electricity would also result in further reductions in the cost of onshore wind power.

Established renewable energy technologies – including onshore wind and solar – have been locked out of the Contracts for Difference (CfD) framework since the 2015 Conservative manifesto pledge to 'end any new public subsidy' to onshore wind farms, with the current auction process only open to less established renewable technologies such as offshore wind.

-- Advertisement --

However, a new auction is expected to clear at £49.40 per Mwh, and it is estimated the capacity delivered through it would result in over £1 billion of private sector investment in clean energy generation across the country, helping to displace some eight million tonnes of CO2 during their lifetime.

Niall Stuart, Chief Executive of industry body Scottish Renewables, which commissioned the report, said: "The UK Government has already published research showing that onshore wind is on track to be the cheapest form of electricity generation in the UK, and this report shows that the industry is continuing to drive down costs.

"The study's findings reinforce that onshore wind can make a significant contribution to ministers' ambitions for the Industrial Strategy.

"At these kinds of prices, the technology can continue to play a key role in cutting carbon emissions whilst keeping bills down for businesses and households – an important priority for Government.  It can also secure inward investment and jobs across the country and drive the renewal of our ageing energy infrastructure.

"However, the report also shows that we will only deliver those benefits at scale if onshore wind and other mature renewables are able to bid again for long-term contracts for clean electricity generation."

(LM/CD)