Swedish utility Vattenfall expects its offshore wind projects to be competitive enough so as not to need any more government subsidies by 2025, the company’s head of strategic projects in wind industry Michael Simmelsgaard was reported by Reuters Africa as saying.
Vattenfall also expects to have 7 GW of both on- and offshore wind capacity installed by 2025, Simmelsgaard told a conference.
The core profit from Vattenfall’s wind power segment is expected to reach SEK 16 billion (EUR 1.72bn) by 2025, Simmelsgaard said in his presentation.
Currently, the company’s wind portfolio consists of 1.8 GW of installed capacity, but the recently announced decision to invest EUR 5.5 billion in wind power development by 2020 should set Vattenfall on track to meet the projected targets.
The offshore wind industry is still reliant on government subsidies as the cost of building and maintaining turbines resilient to adverse weather conditions typical of marine environment is still high.
Offshore WIND Staff