The Economic Impact of Offshore Wind Farm Development on Energy Pricing and Market Dynamics in the UK

Project Description:

This PhD scholarship is offered by the EPSRC CDT in Offshore Wind Energy Sustainability and Resilience; a partnership between the Universities of Durham, Hull, Loughborough and Sheffield. The project is sponsored by industry partner, RenewableUK. The successful applicant will undertake six-month of training with the rest of the CDT cohort at the University of Hull before continuing their PhD research at Loughborough University.

This project focuses on evaluating the economic effects of offshore wind farm development on UK energy markets, including energy pricing, market dynamics, and the role of emerging technologies.

The UK is a global leader in offshore wind energy, housing some of the largest wind farms and aiming to generate one-third of its electricity from this source by 2030. This transition supports the country’s commitment to reducing carbon emissions and positions offshore wind as a crucial component of a clean and affordable energy system.

The UK’s commitment to offshore wind power is essential to meeting its carbon reduction goals. This proposal investigates the economic implications of offshore wind farm development on energy pricing, supplier strategies, and consumer behaviour while considering the integration of various renewable technologies such as onshore wind, energy storage, and wave and tidal power.

By examining the infrastructure connecting offshore wind generation to consumers—specifically underwater export cables and substations—the project will analyse how these factors influence prices, tariffs, and the overall energy market in the UK. The research will begin by mapping renewable energy resources and the necessary infrastructure to support offshore wind development, focusing on the geographical distribution of resources and their complementarity with other renewable sources regarding reliability and grid stability. It will also explore how offshore wind developers price their energy in relation to competitors and consider factors like infrastructure investment and operational costs.

We aim to evaluate the impact of offshore wind energy supply on consumer electricity prices and explore the relationship between generation and consumer demand patterns during peak and off-peak periods, analysing how pricing structures adapt accordingly.

This research will primarily focus on quantitative analysis to comprehensively examine the economic dynamics of offshore wind energy. Specifically, it aims to explore how innovations in one renewable energy technology (such as offshore wind) influence the adoption and performance of other technologies like solar and tidal energy. This approach will enable us to map the renewable energy market by analysing how producers strategically set prices depending on the technologies they use and the extent to which these technologies overlap or complement each other. Furthermore, we will investigate how investments in offshore wind infrastructure may create positive or negative externalities for other renewable sectors and how these spillovers shape overall investment strategies, risk assessments, and capital flows across the broader energy market.

Training and development

You will benefit from a taught programme, giving you a broad understanding of the breadth and depth of current and emerging offshore wind sector needs. This begins with an intensive six-month programme at the University of Hull for the new student intake, drawing on the expertise and facilities of all four academic partners. It is supplemented by Continuing Professional Development (CPD), which is embedded throughout your 4-year research scholarship.

The successful applicant will develop a wide range of numerical modelling and programming skills that will provide excellent career opportunities in both academia and industry.

Entry Requirements

If you have received a First-class Honours degree, or a 2:1 Honours degree and a Masters, or a Distinction at Masters level with any undergraduate degree (or the international equivalents) in economics, energy economics, environmental science or related fields, we would like to hear from you. with demonstrated strengths in quantitative analysis, econometrics, and a keen interest in renewable energy markets. This opportunity is ideal for students passionate about renewable energy, economic strategy, and sustainable policy design. Strong analytical, quantitative and interdisciplinary collaboration skills are essential.

If your first language is not English, or you require Tier 4 student visa to study, you will be required to provide evidence of your English language proficiency level that meets the requirements of the Aura CDT’s academic partners. This course requires academic IELTS 7.0 overall, with no less than 6.0 in each skill.

The deadline for applications is Wednesday 4 December 2024.

If you have any queries about this project, please contact Dr Anna Rita Bennato,  a.bennato@lboro.ac.uk  

You may also address queries about the CDT to auracdt@hull.ac.uk.

Watch our short video to hear from Aura CDT students, academics and industry partners:

Funding Notes

The Offshore Wind CDT is funded by EPSRC, allowing us to provide scholarships for Home students that cover fees plus a stipend set at the UKRI nationally agreed rates, circa £19,795 per annum at 2025/26 rates (subject to progress). In addition, a number of scholarships will be made available for International students.

Eligibility

Research Council funding for postgraduate research has residence requirements. Our CDT scholarships are available to Home (UK) Students. To be considered a Home student, and therefore eligible for a full award, a student must have no restrictions on how long they can stay in the UK and have been ordinarily resident in the UK for at least 3 years prior to the start of the scholarship (with some further constraint regarding residence for education). For full eligibility information, please refer to the EPSRC website.

We also allocate a number of scholarships for International Students per cohort.

How to apply

Please note, you may only apply for ONE project offered through the EPSRC CDT in Offshore Wind Energy Sustainability and Resilience.

Please ensure that you familiarise yourself with the Aura CDT website before you apply to give you a good understanding of what a CDT is, our CDT’s research focus and the training and continuing professional development programme that runs alongside the CDT. The Frequently asked questions page and Candidate resources page are essential reading prior to applying.

Applications are made via the Loughborough University admissions system. If you have not applied to Loughborough University before, you will need to set up an account to enable you to track the progress of your application and upload supporting documents.

Follow this link to apply for CDT projects at Loughborough University: https://www.lboro.ac.uk/study/postgraduate/apply/research-applications/ 

Under programme name, select ‘Business School Offshore Wind Energy Sustainability and Resilience’. Both Full-time and Part-time modes of study are available. Please quote the advertised project reference number in your application: this is Aura25ARB3 for “The Economic Impact of Offshore Wind Farm Development on Energy Pricing and Market Dynamics in the UK (RUK)”.

With your application, you need to upload copies of the following supporting evidence:

• Complete transcripts (and final degree certificate(s) where possible). If your qualification documents are not in English, you will need to supply copies of your original language documents as well as their official translation into English.
• Your Curriculum Vitae (CV).
• A completed Supplementary Application Form (upload as part of your supporting evidence documentation).

Uploading the form 

When you have completed the form, please save it as a pdf format and labelled as follows:

Last name_first name PhD application form

Upload the form as part of your application documents through the Loughborough University student application portal upload as part of your supporting evidence documentation. Please do not send your form directly to the Offshore Wind CDT.

Guaranteed interview scheme 

The CDT is committed to generating a diverse and inclusive training programme and is looking to attract applicants from all backgrounds. We offer a Guaranteed Interview Scheme for home fee status candidates who identify as Black or Black mixed or Asian or Asian mixed if they meet the programme entry requirements. This positive action is to support recruitment of these under-represented ethnic groups to our programme and is an opt in process. Find out more.

Interviews 

Interviews will be held during mid-January 2025.

References

• Corona, L., Mochon, A. and Saez, Y., 2022. Electricity market integration and impact of renewable energy sources in the Central Western Europe region: Evolution since the implementation of the Flow-Based Market Coupling mechanism. Energy Reports, 8, pp.1768-1788.
• Mulder, M. and Scholtens, B., 2013. The impact of renewable energy on electricity prices in the Netherlands. Renewable energy, 57, pp.94-100.
• Van Der Schoor, T. and Scholtens, B., 2015. Power to the people: Local community initiatives and the transition to sustainable energy. Renewable and sustainable energy reviews, 43, pp.666-675.
• Wilson, A.B., 2020. Offshore wind energy in Europe, European Parliament Report.