The UK government’s Department for Business, Energy and Industrial Strategy (BEIS) has published projections on costs for projects starting in 2020.
These include a breakdown of how much it could cost to generate a megawatt hour (MWh) of electricity according to different energy types.
The estimates by BEIS show that it will cost £63 to generate a megawatt hour of electricity using onshore wind energy, according to BBC. It’s the cheapest renewable power source listed, in comparison with £106 for offshore wind.
These figures do account for construction costs and the fact that wind and solar power are intermittent.
But they don’t consider costs associated with environmental factors like air quality impact.
The most recent report available was published in 2016. But, the findings were also backed up by a more recent study by renewable energy consultants BVG Associates.
This study – commissioned by Scottish Power – found that onshore wind is the cheapest form of new-build electricity generation available in the UK today.
The total electricity generation in the UK stood at 336 terawatt-hours (TWh) in 2017, with 29.3% generated by renewable sources of energy. This was an increase from 24.5% in 2016, according to official figures.
BEIS has pointed out that the trend has been spurred on by an increase in renewable power generation capacity.
Over the last year, generation from wind and solar sources increased from 47.7TWh to 61.5TWh. That was largely down to a 22.6% rise in wind capacity.