UK Government Reports Significant Reduction in Wind and Solar Costs
The UK government has revised the levelised cost of electricity (LCOE) for wind and solar down by 30-50%, indicating substantial savings compared to previous estimates. This shift signifies that electricity from renewables could be supplied at half the cost of gas-fired power by 2025, impacting energy pricing and investment decisions in the sector.
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The UK Department for Business, Energy and Industrial Strategy (BEIS) has published updated estimates indicating that the levelised cost of electricity (LCOE) for wind and solar is now 30-50% lower than earlier projections. The LCOE for offshore wind in 2025 is estimated at £57/MWh, down from £107/MWh in 2016.
In contrast, costs for nuclear power remain unchanged, with a target of a 30% reduction by 2030. The reductions are attributed to advancements in technology and operational efficiencies. Additionally, gas with carbon capture and storage (CCS) is now expected to be competitive with other renewables by 2025. These shifts could reshape energy markets as renewables become more economically viable.
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