September 11, 2017 / 8:05 AM / 10 months ago

CORRECTED-UPDATE 1-UK renewables auction clears as low as 58 pounds/MWH for offshore wind

(Corrects winning bidder to Dong Energy from SSE in second paragraph)

LONDON, Sept 11 (Reuters) - Britain’s auction for subsidies for renewable electricity cleared at a low of 58 pounds ($76.41) per megawatt hour (MWh) for offshore wind, the government said on Monday.

Projects owned by Germany’s Innogy Renewables and Denmark’s Dong Energy were among 11 winners of contracts that are worth up to 176 million pounds a year, it said.

The auction marks the first time the level of British subsidies for offshore windpower fell below the subsidies previously awarded for new nuclear projects.

The renewable projects are expected to deliver up to 3 gigawatts (GW) of new electricity generation capacity from 2021-2023.

Offshore wind projects expected to begin producing electricity in 2021-2022 were awarded contracts for 74.75 pounds/MWh while those set to begin generation in 2022-2023 were awarded 57.50 pounds/MWh.

France’s EDF was awarded 92.50 pounds/MWh, in 2012, index linked to inflation, to build Hinkley Point C, which will be Britain’s first new nuclear plant in over 20 years.

The cost of producing electricity from wind farms has plummeted over the past few years, helped by larger turbines.

$1 = 0.7591 pounds Reporting by Susanna Twidale; Editing by Louise Heavens and David Goodman

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