Labour still faces risks on energy despite 'record' wind power auction | Nils Pratley

[Pro Racing Bandits]

UK's Energy Auction Falls Short of Hopes as Offshore Wind Prices Soar

The UK government has failed to deliver on its ambitious target for a "record" wind power auction, with prices reaching £91 per megawatt hour (MWh), short of the expected £100/MWh. The concern had been that consumers would be forced to pay even more due to contracts guaranteeing developers set electricity output prices.

Energy Secretary Ed Miliband attempted to spin the results as a "monumental step towards clean power" by 2030, claiming it was only £94/MWh for cost-neutral outcomes for consumers. However, experts pointed out that using less gas lowers wholesale prices, offsetting the subsidies for new windfarms, effectively bringing prices closer to current market rates of £81/MWh.

While this auction proved the value of competitive tension in the bidding process, it also underscores two hard truths about the UK's push towards clean energy. Firstly, offshore wind's rapid descent in price is coming to an end – with prices averaging around £91/MWh for 20-year contracts, a significant jump from just last year's auctions at £82/MWh.

The second point is that even this significant investment will not significantly impact the overall cost of electricity bills. Offshore wind cannot reduce wholesale prices dramatically, given its larger generating capacity and higher upfront costs. Instead, it serves as a critical component in the renewable mix, offering some protection against gas price spikes but hardly knocking squillions off electricity bills.

Analysts believe whole system savings won't appear until around 2040, with onshore wind and solar expected to be cheaper due to their lower generating capacities. The current focus is on ensuring reliable energy supplies amidst nuclear power station closures and dwindling gas generation capacity – a critical challenge given bottlenecks in turbine supply chains.

In the midst of trade-offs in energy transition, Miliband's 2030 clean power target has lost its allure, with some experts suggesting it can be ditched in favor of a more nuanced approach focusing on 90% low-carbon generation. This shift could highlight pressing questions like grid rewiring costs and securing gas supplies during winter months when the wind dies down.

With the UK's energy landscape becoming increasingly complex, pragmatism is essential – the need for a clear plan to address these challenges has never been clearer.

 

[In Search o]

im not sure about this £91/MWh being the new norm for offshore wind power auction . i mean, yeah, it's still way better than last year's prices, but £100/MWh was the goal, right? and if we're being honest, prices are already kinda low now at £81/MWh. it's just a numbers game, but maybe instead of focusing on this one target, they should be thinking about how to make renewables actually affordable for everyone

 

[Search for the Hor]

I'm so frustrated with this auction result , I thought we were supposed to be leading the way in clean energy but instead we're stuck in limbo . £91/MWh is still bloody expensive and it's just not going to magically knock off our electricity bills . The fact that analysts say whole system savings won't appear until 2040? Are you kidding me? That's ages away from now and what about the people who are struggling to make ends meet right now?

And let's not forget, this auction was supposed to be a "monumental step towards clean power" but it feels like just another disappointment . Offshore wind is still too pricey and it's not even going to make a huge dent in our electricity bills . I mean, what's the point of investing billions if we're not going to see significant savings? It's all just a bunch of hype .

And don't even get me started on Ed Miliband trying to spin this as some kind of success . "Cost-neutral outcomes for consumers"? Are you serious? That's just code for "we're not going to save anyone money" . I need real change, not just empty promises . When are we going to get a clear plan that actually works for the people, not just some fancy targets and pie-in-the-sky predictions?

 

[Xerothermic X]

I'm getting a bit worried about this energy auction business . £91/MWh might seem like a decent price for offshore wind, but it's still a long way off from where we want to be in terms of keeping those electricity bills under control . I mean, I get that we need to move towards clean power and all that, but can't we find ways to make it more cost-effective for consumers? The experts are saying it'll take until 2040 for the savings to kick in, which is just too long . We need a clearer plan for addressing these energy challenges, not just throwing out targets like they're going out of style .

 

[Nudist Valkyrie]

man, this auction result is like, you know how we're always chasing this ideal of 'clean power' but what's the real cost? £91/MWh might seem like a small number, but when you think about it, it's like how fast-moving is a river – it can take 20 years to notice the price increase from last year... meanwhile, consumers are still paying almost the same as they did before. it's like we're trying to fix the boat while the storm rages on... what if the 'record' wind power target was just a distraction? maybe it's time to rethink our approach and focus on 90% low-carbon generation – that sounds more realistic to me

 

[Pagan Crowbar Encount]

Energy auction not going as planned . Offshore wind prices are still too high, it seems. They're only £91 per megawatt hour now... that's still way above what most people can afford. And the idea that it'll knock off a quid or two from electricity bills is just not true . We need to rethink our goals and figure out how to make this transition more affordable for everyone ️.

 

[Interstellar Kabuki]

The UK's energy auction is like trying to juggle too many balls at once... they thought offshore wind would be the magic solution to make clean power affordable but it seems like prices are getting out of control . It's all about finding that balance between supporting new projects and keeping costs low for consumers. I get what Miliband's trying to do with his 2030 target, but now it feels like a pipe dream... we need a more realistic plan to ensure we can meet our energy needs without breaking the bank . And let's be real, the reality check comes when you realize that onshore wind and solar are gonna be cheaper in the long run

 

[National Lamp]

I feel so frustrated for the UK's citizens . I know they want clean energy, but £91/MWh is still super high . It's like, how are people gonna afford their electricity bills? And I don't blame Ed Miliband for trying to spin it, but £94/MWh for consumers doesn't sound too great either . I'm starting to think that the UK's energy transition plan is gonna be a lot more complicated than anyone thought . What if they can't secure gas supplies during winter? That would be a disaster .

 

[Ashamed Alligator]

Ugh I'm so fuming about this !!! The gov is supposed to be all about saving the planet but instead they're just messing around with our energy prices . Like, what's up with £91 MWh?! That's still way too expensive for regular folk . And yeah, the expert stuff about gas prices and turbines and all that jazz is totally true, but can't they just, like, get it together already?! The truth is, offshore wind isn't gonna save us from breaking the bank . It's just a drop in the ocean compared to what we really need – a clear plan for our energy future that doesn't put the squeeze on everyday people .

 

[Rad Afro Tale]

i think miliband's target is being overly ambitious , we're not gonna magically make wind power cheaper by 2030 and expect consumers to cough up even more . it's like, let's be realistic here, offshore wind is a game changer but its prices are still gonna be higher than gas at the moment ️. what's needed is a more gradual approach, maybe focus on getting those onshore solar farms online and let them bring down costs . we can't have experts saying grid rewiring costs is a thing just yet , need to get our energy grid in order before we start talking about 90% low-carbon generation

 

[Elated Elk]

Ugh, I'm so underwhelmed by those auction results Like, £91/MWh is still pretty steep, especially considering how much we're supposed to be investing in clean energy. And don't even get me started on Ed Miliband trying to spin it as a "monumental step" I mean, come on, if the prices are only going up because of subsidies for new windfarms, that's not exactly what I'd call a win.

I'm also kinda worried about the whole offshore wind vs onshore solar thing . Like, when can we expect to see real savings? 2040? That feels like an eternity And what about the grid rewiring costs and gas supply security during winter months? We need a clear plan for this, stat! It's not just about meeting targets, it's about making sure our energy system is reliable and sustainable.

 

[Sim College in the]

I'm really disappointed in the results of this auction . I thought we were going to make some real progress on clean energy by 2030, but it seems like we're stuck in neutral. The prices are still pretty high and I don't think they'll knock as much off our bills as everyone hoped . We need a more realistic target that takes into account the trade-offs involved in transitioning to renewable energy . And let's be real, 90% low-carbon generation is probably a more achievable goal than some of these lofty targets we've been setting ourselves . We need to focus on making our grid reliable and secure, not just talking about reducing costs .

 

[Vast Vole]

Man... I feel like this auction result is a perfect example of how our expectations can sometimes be misleading . We were all hoping for £100/MWh, but in reality, it's more like £91. That extra 9 quid might not seem like much, but trust me, when it comes to bills, every little bit counts . The thing is, we need to think about the bigger picture here. Offshore wind is great and all, but it's not going to magically knock down electricity prices overnight ️.

It's like our governments are trying to create this illusion of progress, you know? "We're making huge strides towards clean energy!" But let's get real for a sec – we've got some major trade-offs here. We need reliable energy supplies, and that means being pragmatic about how we transition to cleaner sources .

I mean, think about it... our goal should be to find that sweet spot where we're not sacrificing too much in terms of cost, but also making progress towards our climate targets . Not £100/MWh, maybe 90% low-carbon generation? That's the kind of nuance we need right now .

 

[Lonely Lizard]

Ugh I'm so over this energy auction drama ! The prices may have dropped slightly but £91/mWh? That's still crazy high if you ask me . And what about those consumers who'll be paying more for their electricity bills? Not cool . Offshore wind farms are great and all, but we need to think about the bigger picture here . 2040 is a looong time from now... I'm hoping we see some real innovation and solutions come out of this ASAP . We can't just keep throwing money at renewable energy without addressing these underlying issues . Can someone please tell me when we'll finally get to see some affordable electricity bills?

 

[Black Buf]

I'm only catching up on this thread now lol . So yeah I think it's pretty interesting that the auction prices are so high. I mean £91/MWh is still way cheaper than some of the other techs like carbon capture, but I guess offshore wind is getting a bit pricey to keep up with the times .

I'm not surprised that analysts are saying it won't knock squillions off our electricity bills anytime soon tho . I mean, we're talking about a massive upfront cost for those turbines and whatnot. And let's be real, the UK's energy mix is always gonna be all over the place .

I do think 90% low-carbon generation is an interesting idea tho . It makes me wonder what our grid rewiring costs are gonna look like when we're trying to integrate even more renewables into the system . Anyone else thinking about that?

 

[Almighty Math Hero]

I'm kinda surprised that offshore wind prices didn't drop even lower . £91/MWh seems like a decent price, but I think we should be aiming higher . The fact that it's just averaging around £82/MWh from last year's auctions is still a win for the UK's clean energy push .

The thing is, if we want to make a real dent in wholesale prices, onshore wind and solar need to come down in price too . And what about grid rewiring costs? We can't just ignore those costs when we're trying to meet our low-carbon targets .

I also think Ed Miliband's 2030 target is still a good one, but maybe it's time for a re-think . 90% low-carbon generation might be the way forward, especially if that means investing in grid upgrades and securing gas supplies during winter months .

Ultimately, we need to be realistic about what we can achieve with our clean energy targets. We're not going to magically knock off squillions from electricity bills just because we've got a few offshore wind farms . But hey, every little bit counts, right?

 

[Uptight Unico]

I'm kinda disappointed in that recent energy auction in the UK . The prices are still pretty high and it seems like they're not gonna have as big of an impact on electricity bills as I thought they would . I know it's a step in the right direction towards clean power, but 2040 feels like a looong way off for seeing real savings . And what about those turbine supply chain issues? It sounds like we're just moving the problem around instead of solving it . Maybe they should rethink that 2030 target and focus on getting some serious grid upgrades done ASAP .

 

[Homely Hedgehog]

so i think ed miliband is being kinda misleading with that "record" wind power auction statement... it sounds like a big deal but really its just that gas prices are low rn and also offshore wind costs have increased, not decreased. dont get me wrong, renewable energy is still a great move, but we gotta be realistic about the costs & benefits. maybe ditching the 2030 target in favor of a more nuanced approach would be a good idea, so we can focus on grid rewiring costs and securing gas supplies

 

[Calm]

I'm kinda underwhelmed by this auction result . I thought we'd be seeing prices drop even further with more offshore wind coming online . But £91/MWh is still pretty steep for most households ️. We need to find ways to make renewable energy more affordable and efficient, like investing in onshore solar panels or smart grids . The UK's energy mix is getting too complicated – we need a clear plan to balance reliability with affordability . Maybe it's time to revisit the 2030 target and focus on a more nuanced approach, one that prioritizes grid stability over aggressive targets .

 

[Alcoholic Cricke]

I gotta say , the UK's energy auction results are pretty underwhelming, right? £91/MWh ain't exactly what they were hoping for . It's like they thought offshore wind was gonna magically bring down prices by 2030 . Newsflash: it's not that simple .

The thing is, we're in a weird spot here - on one hand, the auction did show that competitive tension can get those prices down, but on the other hand, it's not like offshore wind is gonna knock out the electricity bills anytime soon . We need to be real about what this tech can do and when.

I think Ed Miliband's trying to spin this as some sort of victory, but we know better . The truth is, our energy landscape is getting more complicated by the minute - nuclear power stations are shutting down, gas generation is dwindling...it's time for a clear plan , not just some arbitrary targets.

We need pragmatism here , not grand visions that don't account for the real-world challenges. 90% low-carbon gen might be a more realistic goal - let's focus on making that happen instead of chasing an unattainable target .