Sky News Daily Will wind power end up costing us more?
Jan 14, 2026
Paul Kelso, Sky News business correspondent with expertise in energy markets, dives into the latest offshore wind auction. He reveals that the UK secured approximately 8.5GW of wind at £91/MWh, but discusses concerns about rising costs impacting consumers. Kelso explains contracts for difference, the scale of turbine engineering, and the reasons behind increasing renewable prices, including supply shocks and higher borrowing costs. He also explores political debates around energy pricing and the ambitious 2030 clean power targets amidst rising bills.
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Scale And Price Of The New Auction
- The auction delivered about 8.5GW of offshore wind at roughly £91/MWh.
- That capacity equals roughly a million homes per gigawatt and sits mainly in the North Sea.
Factory Visit: Turbines In Pieces
- Paul Kelso visited the Siemens Gamesa blade factory in Hull and described the giant blades and towers.
- He recounted components arriving from Vietnam and installation vessels taking assembled turbines 200km out to sea.
How Contracts For Difference Work
- Contracts for difference (20 years) guarantee developers a fixed price and settle differences with the wholesale market.
- The government sets a budget for top-ups and these contracts have encouraged large renewable and nuclear projects.