New report shows onshore wind could deliver £1.6 billion benefit to UK consumers

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A new report, ‘The Power of Onshore Wind” from renewable energy consultants BVG Associates (BVGA) has demonstrated that awarding contracts for 5 GW of new onshore wind power between 2019 and 2025 could deliver a net payback to UK consumers of £1.6 billion. The report is supported by ScottishPower Renewables, Vattenfall, innogy and Statkraft..

The analysis considers five new Contract for Difference (CfD) auctions held from 2019 and at 18 month intervals thereafter. Each has a maximum capacity of 1 GW.

Forecasts show that the costs of new onshore wind projects will drop beneath the Government’s forecast wholesale electricity price from 2023, delivering a net benefit for UK electricity consumers.

Over the five auctions it is expected that 86% of the projects by capacity will be built in Scotland and 12% in Wales. Less than 2% will be built in England made up of small scale projects (sub 50 MW) of a type typically developed by communities.

Around 18,000 skilled jobs will be supported during the peak years of construction, with 8,500 people employed in long-term skilled jobs when all the wind farms are operating. It is anticipated that 60% of the jobs will be created in Scotland, 17% in Wales and 23% in England.

A clear commitment to five auctions would stimulate supply chain investment, increasing the already high proportion of UK content in projects to almost 70%. The biggest opportunities are in fabricating towers and blades, part refurbishment and the development of UK installation teams.

Source: BVG Associates