UK Offshore Wind Comes In 40% Cheaper Than Gas Power

Britain just proved that going green can also mean saving green.

The UK awarded a record 8.4 gigawatts of offshore wind capacity in its latest auction, making it the largest offshore wind deal in European history. That's enough clean electricity to power nearly 10 million homes.

Here's the stunning part: The winning bids came in at an average of £91.20 per megawatt-hour in England and Wales. That's roughly 40% cheaper than building and running new gas plants, which cost around £147 per megawatt-hour.

The price advantage is massive for consumers. This new offshore wind capacity will save households nearly £1.7 billion per year compared to relying on gas-fired power.

The auction attracted intense competition, with 19 projects totaling 24 gigawatts vying for contracts. That fierce competition drove prices down and showed just how far offshore wind technology has come in the past decade.

German energy giant RWE emerged as the big winner, securing contracts for nearly 7 gigawatts of capacity. The British government expects the projects to unlock £22 billion in private investment and support roughly 7,000 jobs across the country.

The auction also included 192 megawatts of floating wind technology. While that sounds small, it represents an important advance for turbines that can work in deeper waters where traditional offshore wind farms can't operate.

The Ripple Effect

This auction sends ripples far beyond Britain's shores. It demonstrates that renewable energy has crossed a critical threshold where it beats fossil fuels on pure economics, not just environmental benefits.

Energy Secretary Ed Miliband framed the results as a win for energy independence. "Britain is taking back control of our energy sovereignty," he said, noting the country can now rely less on markets controlled by oil-producing nations.

The timing matters too. As energy costs have squeezed household budgets across Europe in recent years, this auction shows that investing in renewables offers a path to more stable, affordable power for the long term.

Other nations watching Britain's success may accelerate their own offshore wind programs. The auction proves that at scale, wind power isn't just competitive with fossil fuels—it's significantly cheaper.

Britain is betting big that offshore wind will anchor its goal of achieving clean power by 2030, and this auction suggests that bet is paying off for everyone.