Wind Energy – Subsidy-Free Irish Sea
BP is planning to construct two offshore wind farms in the Irish Sea without seeking government subsidies, according to the Times.
If successful, this would be the first time that offshore wind projects have been developed without subsidies.
Work could begin on the Morgan and Mona projects in the Irish Sea as soon as next year without contracts from the UK government to guarantee their revenues.
The wind farms together would boast up to 214 turbines about 20 miles off the coasts of north Wales and northwest England and could power 3.4 million homes.
The energy giant intends to bypass the UK government’s contracts for difference (CfD) process, which guarantees fixed revenues over a certain period of time. BP’s CEO, Bernard Looney, stated that the company’s strategy is to utilize the electricity generated for its own operations due to high demand in the UK. Construction could start as early as next year.
This move by BP is particularly noteworthy given the current challenges facing the offshore wind industry. Costs for offshore wind projects have risen significantly in recent months, which has caused some developers to reassess their investments.
