Why Renewables Are Cheaper Than New Gas Plants
Global evidence: In 2023, 81% of new large-scale renewable projects were cheaper than fossil-fuel alternatives .
UK energy costs: The levelised cost of onshore wind (£44/MWh), and large-scale solar (£114/MWh) .
UK forecasts: By 2025, renewables are projected to be ~50% cheaper than gas, considering both unsubsidized wind and solar . Offshore and onshore wind may be 61% less than gas (£44–£46/MWh vs. £114/MWh) .
Denmark & the UK: Leading the Renewable Shift
🇩🇰 Denmark
Wind domination: Offshore and onshore wind now contribute 54% of Danish electricity; biomass and solar make up over 80% of their total power mix .
Growth strategies: Denmark targets 18 GW offshore wind by 2030 and up to 35 GW by 2050 .
Fossil phase‑out: Coal retires, biomass replaces gas in district heating, and biogas is expanding—all pointing to full fossil‑free electricity by 2030 .
🇬🇧 United Kingdom
Record-low strikes: 2019 CfD offshore wind achieved contracts at £39.65–41.61/MWh, even below 2025 costs .
Grid savings: Winning offshore wind bids save ~£100–170 million per GW annually compared to gas .
First-ever negative energy prices: In December 2024, wind-driven surplus pushed UK power prices below zero .
Key Renewable Sources
1. Wind Power
Onshore and offshore turbines are the cheapest new electricity sources. UK & Denmark lead with large-scale deployments.
2. Solar PV
Large-scale solar costs ~£41/MWh—half the gas price .
3. Biomass & Biogas
Denmark uses biomass for ~20% of its electricity and expanding biogas & biomethane in heating .
4. Emerging: Storage & Hydrogen
Investments in batteries, CCS, green hydrogen, and district heating ensure grid stability as renewables expand .
Key Companies Driving the Transition
Ørsted (Denmark): The world’s largest offshore wind developer with major UK (Hornsea, Barrow) & US projects .
Equinor: Now a major Ørsted shareholder, helping shift from oil & gas to green energy .
100Green (UK): Offers 100% renewable electricity & green gas to UK homes .
📌 Sources
IRENA: 81% of renewables cheaper than fossil fuels
BEIS/Imperial College: LCOE figures for wind & solar vs gas
Carbon Brief & resilience analyses on UK energy economics
IEA & national reports on Denmark’s energy mix & targets
Wikipedia/company profiles for Ørsted, 100Green
News & market research on UK power prices & auctions
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