How much subsidy do offshore wind farms get?

It is important to recall that some of the highly subsidised offshore wind farms are large and consuming a substantial proportion of the total subsidy provided to the industry. On the basis of official RO and CfD data we estimate the total subsidy in 2020 for offshore wind to be over £4.3 billion.

What will the UK's offshore wind subsidies mean for the UK?

The subsidies will underpin 11GW of power, which is equivalent to the total capacity of all the UK’s offshore wind operating today, if all the projects listed are built. Ørsted, Vattenfall, and Scottish Power were among the winners of the offshore wind subsidy contracts, which extend for 15 years from the time the project is delivered.

Which offshore wind farms are subsidised under the Ro?

There are three special case offshore wind farms subsidised under the RO with extremely high levels of subsidy, namely the Aberdeen Offshore demonstration unit which receives 2.5 ROCs per MWh, and two floating offshore wind farms, Hywind and Kincardine, which receive 3.5 ROCs per MWh.

How much electricity does the UK generate from wind power?

Electricity generation from wind power in the UK increased by 715% between 2009 and 2020, producing 75,610 gigawatt hours (GWh) in 2020. Most of this is from offshore wind farms with some contribution from onshore, though the latter has suffered from a lack of government support through the planning system in recent years.

How does a wind farm subsidy work?

The CfD provides subsidy as a top up payment that the generator receives over and above a reference price (essentially the wholesale market price for electricity) to match a strike price, in essence a guaranteed price, that the wind farm owners were awarded in their contracts.

Can the UK deliver on 50GW of offshore wind by 2030?

This will ensure healthy competition among a strong pipeline of projects, helping the UK deliver on its ambition of up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind. First established nearly a decade ago, the CfD has helped reduce the cost of renewables.