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FEBRUARY 7, 2021
By Paul Homewood
Despite mounting evidence to the contrary, we can continue to be sure that offshore wind costs have fallen below £ 50 / MWh.
However, the US Energy Information Administration disagrees. They regularly evaluate the level costs of all power sources and only calculated a year ago that the costs for offshore wind at current prices are 115.04 USD / MWh, approx. 84 GBP / MWh.
Their number includes a transmission cost of $ 3.15. Without that cost we see £ 82 / MWh.
Power generation
Of course, you cannot simply compare the generation costs that the EIA has paid, as there are associated system costs, as BEIS explains:
https://www.gov.uk/government/publications/beis-electricity-generation-costs-2020
As Table 7.1 shows, these hidden costs for offshore wind turbines could be anywhere from £ 15-35 / MWh. In contrast, CCGT actually results in lower system costs (note that the tiered cost of £ 82 / MWh for CCGT includes a false carbon cost of £ 32 / MWh).
Adding this additional system cost to the US cost increases the real cost of offshore wind power to £ 100 / MWh or more.
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