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A new report has revealed the UK will reduce the cost of electricity generated by offshore wind by 30 % in the next seven years.
The report, published by the industry-led Offshore Wind Cost Reduction Task Force, showed evidence that the offshore wind industry can make significant cost reduction in its delivery of 18 GW electricity from wind farms, which is around 20% of UK’s total electricity demand.
The report found the industry could drop delivery cost from £140/MWh today to £100/MWh by 2020, achieving substantial savings of £3 billion per year.
Energy Minister, Charles Hendry, welcomed the announcement by saying: “I am encouraged that this report shows that substantial cost savings can be achieved if action is taken and I welcome this valuable work. I look forward to working closely with industry to take this forward further and deliver these ambitious targets.”
Offshore Wind Cost Reduction Task Force made 28 specific recommendations for the renewable sector to diverse and secure more affordable energy for consumers. The report also encourages industry officials to work more closely with the government for optimising collaboration
Mr Hendry emphasised on the importance of offshore wind farms and their role in securing low carbon energy mix in the future, but he also said that energy costs must come down too.
Andrew Jamieson, Chair of the Offshore Wind Cost Reduction Task Force, said: “To ensure that the UK’s world-leading offshore wind sector expands rapidly over this decade and fulfils its massive potential within the UK’s energy mix, it is vital that costs are reduced. In doing this not only will we reduce risk and drive investment into the sector, we will further protect consumers from increasing energy costs, reduce the industry’s requirement for financial support and deliver jobs and energy security for decades to come.”
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