The cost of offshore wind in Denmark could average €46 a megawatt-hour by 2020, 30% lower than previous estimates, according to the Danish Energy Agency’s updated levelised cost of energy calculator.
DEA said the improved tool, which estimates and compares socio-economic electricity production costs, based the figure on expectations of 40% lower capital expenditure and improvements of 20% for operation and maintenance.
The price excludes grid and system costs, it added.
Average onshore costs in Denmark are calculated at €30/MWh by the tool, 25% lower than previous projections.
The new projection is based on expectations of 20% lower capital expenditure and 5% higher production, DEA said.
The tool also projects solar costs 40% lower, again on the back of improved Capex costs (down 40%) and improved operating expenditure.
It is designed for policymakers, energy regulators and planners, DEA added.
Image: Pixabay
Danish offshore costs to ‘fall 30%’
By EBS