UK offshore wind is no longer a bargain. But it's still better than the alternatives | Nils Pratley

Even with bigger subsidies, the technology looks attractive price-wise compared with gasThe good news is that the government has an offshore wind strategy again, something that was in doubt after the last auction flopped by producing no bids from developers. The maximum price the state is prepared to pay for a windfarm's output for 15 years has been set at ?73 a megawatt hour for the 2024 auction, a level that should be high enough to grab attention in boardrooms and spark some bidding action.The bad news, of course, is that ?73 is a mighty leap from ?44, the price that generated the big thumbs-down, and these subsidies end up on our bills. Yes, we all know about higher interest rates and inflation in everything from steel to the cost of transporting turbines to the North Sea. But a 66% increase? Continue reading...