Last week there should have been a great victory for the British turbine industry. Auctions were held for offshore wind power, asking companies to bid for the right to supply electricity at £44 per megawatt hour – a third of the price offered eight years ago. The government and the renewables lobby hoped that a successful auction would show that wind power could compete with fossil fuels. Instead, developers worried that they couldn’t turn a profit on the amount they would be paid for energy. There wasn’t a single bid.
‘It was very embarrassing,’ says Gary Smith, leader of the GMB union. ‘Whitehall told us wind was getting cheaper and cheaper. Now there will be no bids for the next round of licences because the wind industry can’t afford to put up the projects.’
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