Record breaking reductions in the cost of generating energy from offshore wind have helped drive the plans to build the world’s biggest wind farm in Yorkshire.

The Department for Business, Energy and Industrial Strategy has announced that three projects that will provide power to a total of 3.3 million homes. Critically, the projects are substantially cheaper than the strike prices paid for nuclear energy, a major first in the history of the UK’s energy mix.

Danish giant DONG Energy is to build the world’s biggest offshore wind farm as part of the trio of projects approved by the government. Hornsea Project Two will provide 1,386 megawatts of power and will be built on the Yorkshire coast. The previous project, Hornsea One, was built in the North Sea.

Dong notes that the Hornsea Two project will see operations and maintenance carried out at its Grimsby hub and that the project will see 2,000 jobs during the construction phase and a further 130 once the offshore farm is constructed. Grimsby is one of the most deprived areas in the UK.

The Hornsea Two farm will provide energy at £57.50 per megawatt hour, compared to the 35 year contract for new nuclear power plants of £92.50 per megawatt hour.  This is a substantial cost differential and signals what could be the beginning of the end for the nuclear power industry in the UK.

Unlike nuclear power, offshore wind power has modest security requirements, little in terms of long term waste and produces close to zero pollution. The investments in the UK’s offshore wind power sector (admittedly largely by foreign corporations) has begun to pay off.

The cost reduction compared to the February 2015 auction is staggering, with the prices in the CFD (Contracts for Difference) 47% lower than those two and a half years ago.

Critically, the gap in the provision of energy versus nuclear will have substantive consequences at a time when the British government is ambivalent about renewable energy. On the one hand the tremendous economic and environmental benefits of offshore wind are becoming clear.

However at the same time there remains substantial obstacles towards the spread of onshore wind in the UK, which could soon provide power to millions more.

A historic moment for offshore wind in the UK, the combined wind farms will offer up 3,196 megawatts and provide employment to thousands.