RenewableUK commented today on the release of Offshore Renewable Energy (ORE) Catapult’s ‘Cost Reduction Monitoring Framework’ on behalf of the Offshore Wind Industry Council.
This is the most substantial and comprehensive look at what progress is being made in reducing offshore wind costs.
A backward look at how costs have fallen between 2011 and 2014, the new figures show that offshore wind costs have fallen, with industry ahead of schedule in its efforts to hit the joint industry-government target of £100/MWh by 2020.
The report coincides with the release of today’s results of the first Contract for Difference auction round by the Government.
Commenting on the CRMF, Maf Smith – Deputy Chief Executive of RenewableUK – said: “The industry is working hard on delivering cost reduction. We know this has to be done both to support the energy consumer, and to prove that offshore wind has a continued and growing role in UK electricity needs.
“The biggest single reason for these costs reductions has been industry moving up a gear and choosing bigger turbines. The shift to 6 and 8MW machines also will be the catalyst for a step change in UK manufacturing and jobs, with companies like Siemens and MHI Vestas Offshore now investing in UK factories to build these new larger turbines and blades.”
“However, as the CRMF makes clear, industry also needs to have confidence of Government that its success in reducing costs will be rewarded with long term support and a clear path towards a competitive offshore wind market in the 2020s.”
Industry efforts on managing cost reduction are coordinated by the Offshore Wind Programme Board, which today also issued its annual report tracking its work and progress on a range of industry challenges.