The cost of offshore wind in the UK has fallen by 32% since 2012 and is now below the government’s target of £100 per megawatt hour (MWh), four years ahead of schedule, a new report revealed today.
The ‘Cost Reduction Monitoring Framework’ report – produced by the Offshore Renewable Energy Catapult for the Offshore Wind Programme Board – found that the average levelised cost of energy for offshore wind projects reaching an investment decision in 2015-2016 was £97/MWh, compared with £142/MWh in 2010-2011.
Offshore wind costs have fallen sharply because of the adoption of larger turbines, increased competition and lower cost of capital, the report said.
UK Energy Minister Jesse Norman said: “The UK’s leadership in offshore wind clearly demonstrates that it is an attractive destination for renewable energy investment.
“This growing industry will be an important part of the government’s new industrial strategy, and will be underpinned by £730m of annual support for renewable energy over the course of this parliament.”
Offshore Wind Industry Council co-chair Benj Sykes said: “The industry is cutting costs much faster than predicted, while creating thousands of jobs and stimulating investment nationwide.
“Our industry’s goal is to be cost competitive with other generation sources, and this new data shows that ambition is realistic and that we are well on the way to achieving it.”
Scotland’s Minister for Business, Innovation and Energy Paul Wheelhouse said: “This is proof that the sector is rising to the challenge to reduce the cost of offshore wind, and Scotland can also be rightly proud of how we are playing our part and leading the way in the development of floating offshore wind off our coastline.”
Image: reNEWS
