Wind Power

(asked on 6th October 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the potential effect on electricity prices of the Government's policy to expand offshore wind power by 2030; what assessment he has made of the effect of that policy on other low emission goals; and if he will make a statement.


Answered by
Kwasi Kwarteng Portrait
Kwasi Kwarteng
This question was answered on 12th October 2020

The effect on electricity prices of deploying 40GW of offshore wind by 2030 will depend on a number of factors including the relative costs between different technologies and how they evolve, particularly in offshore wind, the outcome of our upcoming Contract for Difference Auction rounds, network costs, how costs will be spread across different consumer groups, the roll out of flexible technologies like storage and the overall profile of electricity demand.

Offshore wind projects have low operating costs and so can supply electricity cheaply, putting downward pressure on wholesale electricity prices. Wholesale prices are one of many factors that influence consumer costs and the net impact will depend on how changes in these factors are passed on to consumers.

Accelerating the deployment of offshore wind will make a key contribution to our 2050 net zero target.

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy made a Written Ministerial Statement about the announcement to increase our ambition to delivering 40GW of offshore wind by 2030 in the House on Tuesday 6 October.

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