The UK’s offshore wind industry has seen cost reductions of 32% – four years ahead of schedule.
The joint government and industry target to see costs of under £100/MWh by 2020 has already been achieved by wind farms that were given their final investment decisions in 2015 and 2016.
That’s according to a new Offshore Renewable Energy (ORE) report, which states prices are now at £97/MWh compared to £142/MWh in 2010/2011.
Costs have primarily fallen due to the adoption of larger turbines, increased competition in the market and the lower cost of capital, it adds.
The report suggests the industry is confident it can continue to rapidly reduce costs and become the cheapest large-scale source of clean energy.
It is now focusing on further cutting costs and boosting growth and job creation.
Some companies claim costs can be reduced to below £61.6/MWh by 2025.