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Government increases maximum price for wind energy

The government raises the maximum guaranteed price for wind farm electricity to £113 per megawatt-hour.

July 24, 2025 at 04:34 PM

Government raises maximum guaranteed price for wind energy

The government increases the maximum price it will guarantee wind farm developers for electricity.

Government increases guaranteed price for wind energy

The government has raised the maximum guaranteed price it will pay to wind farm developers for electricity. The new guaranteed price for offshore wind is set at £113 per megawatt-hour, up from £102 last year. The price for floating offshore wind has increased to £271 per megawatt-hour, while onshore wind prices have risen slightly from £89 to £92. In contrast, the price for solar energy has decreased from £85 to £75. Energy Secretary Ed Miliband's spokesman emphasized that the auction would determine real market prices, echoing trends seen in previous years. The changes aim to stabilize energy costs and transition to renewable sources, which the government argues will ultimately lower bills for consumers.

Key Takeaways

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The maximum price for offshore wind energy has risen to £113/MWh.

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Floating offshore wind costs now stand at £271/MWh, reflecting its new technology.

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Onshore wind prices increased to £92/MWh, while solar energy prices have decreased.

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Critics warn these prices could exacerbate consumer energy bills.

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The government claims renewable energy will protect against gas price volatility.

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The auction system is designed to establish fair market pricing.

"These are eye-watering prices - the highest in a decade."

Coutinho's comment highlights concerns about the rising costs of renewable energy.

"Ed Miliband is putting net zero zealotry above the economy or the cost of living."

This critique points to a perceived disconnect between environmental goals and economic realities.

This decision to increase guaranteed prices reflects the government's ongoing commitment to renewable energy sources, despite the rising costs. Critics, including Conservative Shadow Energy Secretary Claire Coutinho, argue that these prices are excessively high and may burden consumers, especially in a time of economic uncertainty. The backlash underscores a significant tension between environmental goals and economic pressures facing households. As the sector evolves, balancing these interests will be crucial.

Highlights

Prices for renewable energy are at the highest level in a decade.
These prices could create a burden on consumers in the current economy.
The government defends renewables as a buffer against gas volatility.
New energy prices prompt strong opinions from critics and advocates.

Potential economic impact from rising energy prices

The increase in guaranteed prices for renewable energy could lead to higher costs for consumers. Critics argue this may exacerbate the current cost of living crisis, raising concerns about public reaction.

The long-term implications of these price increases remain to be seen as the energy market evolves.

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renewable energy wind energy government policy consumer impact energy politics

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