The UK Department of Business, Energy, and Industrial Strategy has released figures while auctioning for offshore winds.
Two firms were willing to build offshore wind farms for a subsidy of 57.50 pounds per megawatt hour compared to the new nuclear plant that will be set up for 92.50 pounds per megawatt hour in 2022-23. The auction is awarded to the lowest bidder.
The figures are considered a milestone in the advancement of renewable energy.
A BBC report quoted Emma Pinchbeck, from the wind energy trade body Renewable UK showing her surprised reaction over the figures.
“We still think nuclear can be part of the mix – but our industry has shown how to drive costs down, and now they need to do the same,” she added.
The price of energy from offshore entity has reduced to half in the past five years.
According to Energy analysts, the UK government policy is responsible for lowering of this price. The policy has provided special incentives to upcoming industry and then pushing them to bid in an auction for their subsidies.
Though the massive reduction in the cost of the offshore wind is considered a huge boost to the renewable industry, the nuclear industry said that nuclear energy will still be needed.
It stated that wind power is irregular and therefore nuclear energy will be required.