A report by BVG Associates has found that the costs of offshore wind are starting to fall sharply as a result of large turbines and advances in foundation technology.
The report has also found that these advances have put the industry on track to become sustainable without the need for financial support from consumers. The introduction of larger and more efficient turbines after 2020 will see offshore wind projects that are competitive with new gas plant. The repowering of the oldest projects with more advanced technology could see the advent of offshore wind energy that is below the cost of gas generation.
This marks a radical step towards subsidy-free offshore wind, enabling the UK to decarbonise through the 2020’s cost-effectively.
“I welcome the findings of BVG's report, which suggest that offshore wind has a valuable role to play in a cost-effective, secure energy mix” said Jon Vatnaland, Managing Director of Statkraft UK. “Encouragingly it also indicates the scale of the potential contribution to the UK economy. This is great news for consumers and plans for growth and productivity.”
Bruce Valpy, Managing Director of BVG Associates, added that in the last few years the offshore wind industry has really ‘got it’ about both the necessity and the opportunity to drive down cost of energy and make a difference to local economies. There is much more to come from within the industry as long as it retains the confidence to invest.