Technological advances have helped to bring the costs of wind power down rapidly

The tumbling cost of offshore wind power could mean that it turns out to be 25 per cent cheaper than energy from Hinkley Point nuclear plant when subsidies are awarded to new projects this year, the industry regulator has suggested.

Developers behind a series of proposed offshore wind farms are vying to secure government contracts that will guarantee a price for the electricity they generate for 15 years.

Dermot Nolan, chief executive of Ofgem, said he hoped the winning projects would emerge at a price of “£70 or less” per megawatt-hour (MWh).

That would compare with £92.50/MWh that was last year awarded to Hinkley Point for a 35-year contract, fuelling debate about the merits of the project and future nuclear plants.

The difference between the