Cost of producing energy from offshore windfarms down 32%

The cost of producing energy via offshore windfarms in the UK has fallen 32 per cent since 2012, a new report has found.
Sheringham Shoal wind farm, off the coast of Norfolk, was officially opened in 2012. Picture: WikicommonsSheringham Shoal wind farm, off the coast of Norfolk, was officially opened in 2012. Picture: Wikicommons
Sheringham Shoal wind farm, off the coast of Norfolk, was officially opened in 2012. Picture: Wikicommons

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, and below the Westminister Government’s target of £100 per MWh, four years ahead of schedule.

Offshore wind costs have fallen sharply because of the adoption of larger turbines, increased competition and lower cost of capital, the report for the Offshore Wind Programme Board found.

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“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,” said minister for energy Paul Wheelhouse.

“Our commitment to supporting low carbon energy is outlined in our new Energy Strategy, published today, which sets out our vision for energy production in Scotland to 2050. It outlines the next steps in how we will continue to transition to a low carbon economy, with the offshore wind sector to take an increasingly influential part in that.

“Offshore wind is central to Scotland’s carbon emission reduction targets. With 25 per cent of Europe’s offshore wind potential, we are uniquely positioned to maximise the economic and environmental benefits that the technology can deliver.”

Offshore Wind Industry Council co-chairman 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.”