Onshore wind is cheapest form of energy by far. Here's why bills are still high

The growth in renewables has not yet translated into lower household bills largely because UK electricity prices are still based on expensive fossil fuels

Scotland’s clean-energy transition is at risk of losing hearts and minds. The latest Scottish Climate Survey, published in April, highlighted an interesting contradiction that strikes at the heart of the issues facing governments and renewables developers when it comes to decarbonising energy generation.

Almost three-quarters of Scots believe that climate change is an immediate and urgent problem; yet, less than half think the net-zero transition will improve their quality of life by 2045, the Scottish Government’s target. In short, people have yet to be convinced of the benefits that a move to cleaner energy will bring to them and their families.

Cheaper household energy bills would go a long way towards persuading them that the net-zero transition is more than an arbitrary concept imposed upon them. Far from what many believe, it is already cheaper to generate energy from renewable sources than from fossil fuels and nuclear. Nonetheless, the growth in renewables has not yet translated into lower household bills.

READ MORE: The successes and challenges of Scotland’s clean energy transition

Wind turbine technology has come a long way since the opening of the Whitelee Windfarm near Eaglesham in 2009 (Picture: Danny Lawson) | PA

Farcical

A significant factor behind this is the – quite frankly – farcical reality that UK electricity prices are based on more expensive fossil fuel prices. That is why electricity market reform is vital if we are ever to unlock the potential of renewables to lower bills.

The UK cannot afford to lose sight of the fact that the most effective way to achieve a long-term transition to clean and affordable energy is to build more renewable generation into the UK’s energy mix.

Onshore wind might not immediately come to mind when considering the cheapest form of energy generation. Yet advances in technology, driven by a burgeoning global market, have significantly reduced the costs of onshore wind and it is now by far the cheapest form of energy generation.

READ MORE: Why Scotland's sky-high energy bills should be among Europe's lowest – and how to cut them

Guaranteeing a healthy supply of these projects over the long term is essential to ensure competitive tension and provide the UK Government with flexibility should other forms of generation prove more expensive or slower to develop than anticipated, such as floating offshore wind.

Renewable energy firms are working diligently to develop this pipeline of high-quality onshore wind projects in a manner that directly engages communities and respects the surrounding environment.

Planning problems, slow grid connections

Developing wind farm projects does not come without its challenges; an unnecessarily strict planning regime and slow National Grid connections for projects increase costs and uncertainty for developers. These issues must be addressed if we are to reap the benefits of the renewables transition – maintaining the status quo would be an act of self-sabotage.

The industry faces considerable uncertainty following a proposal in the UK Government’s Clean Power Plan to cap the supply of onshore wind projects at the level of the 2030 target, plus 700 MW.

Many in the business – including myself – believe constraining the number of projects could have the unintended consequence of reducing competition, which would drive up prices in Contract for Difference auctions and increase energy bills. For an industry where long-term certainty is vital, we need to understand whether there is sufficient flexibility for onshore wind to connect from 2030 to 2035.

That Scotland is at the forefront of the UK’s clean energy revolution is not enough. Government – and developers – must work to ensure that Scots see and feel the benefits.

Alan Mathewson is director of Koehler Renewable Energy UK