UK’s Low Offshore Wind Subsidies Could Terminate Race Bank Project

UK Ministers are due to confirm final levels of offshore wind subsidies in December, and the developer of Race Bank offshore wind project, Centrica, says that if the subsidies are not increased, the project will be out of the picture, the Telegraph finds out.

Under the proposed levels of subsidies, offshore wind farms that become operational in 2014/15 will be offered GBP 155 for every MWh over a 15 year contract, which is approximately three times the market price of electricity, and the difference will be paid for in subsidies. Electricity from wind farms scheduled for operation in 2017/18 will have a lower subsidized price – GBP 140/MWh, and GBP 135/MWh the year after.

Centrica says that these prices should be considerably higher, and threatens to terminate the Race Bank project worth GFBP 2 billion, of which the company has planned to invest up to GBP 200 million and partners would fund the remaining amount.

Centrica was granted the planning consent for the Race Bank offshore wind farm in 2012. The wind farm would have a capacity of 580MW, and could supply power to 450,000 households.

[mappress]

Offshore WIND Staff, November 4, 2013; Image: Centrica