It was announced this week that UK consumers could save more than £2billion if the governments planned renewable energy auctions are broadened to a wider mix of technologies – a commissioned report confirms.
Drax, the UK’s largest power producer commissioned NERA Economic Consulting snd Imperial College to investigate into the costs that are not reflected in the UK government rewards for renewable energy and generation.
With wind and solar power being vital as the UK continues to clean up its energy, its identified that they need to be backed up by a constant supply of electricity- which regularly fluctuates up and down to ensure that Britain’s homes and businesses have energy as and when needed.
If the UK were to consider other renewables, in particular Biomass, were to be utilised, consumers could save £2billion a year. The report shows that Offshore wind could require a Contracts for Different (CfD) of £127 per MWh, onshore wind £92-97 per MWh, solar £96 per MWh, and biomass £84 per MWh.
The UK government is currently planning three auctions for new renewable energy sources over the next four years- but all are focused to offshore wind.