Passing of Energy Bill opens up route to cheaper electricity for UK consumers
11 May 2016
RenewableUK says energy policy has reached a significant moment, as the Energy Bill has concluded its passage through Parliament and will now become law.
RenewableUK's Chief Executive, Hugh McNeal, said:
“The Government has said that in the future the UK’s electricity will be generated by gas, nuclear and renewables and not from coal. Onshore wind is now the cheapest of these options. With the pain of the Energy Bill finally behind us, we need to look forward and find sensible ways to take advantage of wind power to ensure consumers’ electricity bills are as low as possible”.
Analysis by Bloomberg New Energy Finance shows that the overall cost of onshore wind is continuing to fall, with new onshore wind cheaper than new gas - even at a time of low gas prices. This shift has also been reported by Policy Exchange, Bright Blue and the Committee on Climate Change, which all confirm the low cost of onshore wind.
- The Energy Bill was introduced 9 July 2015.
- Bloomberg New Energy Finance “Levelised Cost of Electricity Update” report (Oct 2015): “Among the country-level findings of the BNEF study are that onshore wind is now fully cost-competitive with both gas-fired and coal-fired generation, once carbon costs are taken into account, in the UK and Germany. In the UK, onshore wind comes in on average at $85 per MWh in the second half of 2015, compared to $115 for combined-cycle gas and $115 for coal-fired power; in Germany, onshore wind is at $80, compared to $118 for gas and $106 for coal”. BNEF also states that nuclear costs $158 per MWh”.
- The Policy Exchange “Powering Up” report highlights the cost competitiveness of new onshore wind farms compared with new gas plant (Sept 2015)
- Bright Blue “Green and Responsible Conservatism” report highlights that onshore wind costs are falling and can be delivered without subsidy (July 2015)
- The Committee on Climate Change has reported that not using onshore wind will add to consumer bills: “Power scenarios for the fifth carbon budget”. (Oct 2015).