The U.K. is on track to reduce the cost of generating offshore wind power by over 30% by 2020, finds a new report by the U.K.'s Offshore Wind Cost Reduction Task Force.
The report builds on detailed evidence in a study by The Crown Estate to show how these reductions can be achieved.
The cost of delivering 18 GW of electricity from offshore wind farms (around 20% of the U.K.'s total electricity demand) has the potential to drop from 140 pounds/MWh today to 100 pounds/MWh by 2020, saving over 3 billion pounds per year, the report states.
In achieving this, offshore wind would take another major step toward being fully competitive with other forms of generation that make up the U.K.'s energy mix, the authors note.
The report lays out 28 specific recommendations on how the industry can reduce the cost of generation, covering the supply chain, innovation, contracting strategies, planning and consenting, finance, and grid.
Within these areas, the task force has highlighted that more efficient contracting and the concept of "alliancing" – used successfully by the North Sea oil and gas industry to reduce risk and bring down costs – have the potential to lower costs and improve working practices.
Development of a more robust domestic supply chain and increased competition will be the key areas of focus, the task force says, and industry and government should collaborate more closely to address barriers as they arise. A new program board will be established to do this.
"Leases have already been granted for 10 GW of offshore wind developments in Scotland's waters, with companies like EDPR and Repsol committed to developing our offshore potential," says Fergus Ewing, Scotland's energy minister.
"In addition, international companies – such as Samsung, Mitsubishi and Gamesa, based here in Scotland – are developing the next generation of turbines – important innovative work that will ensure offshore wind is a competitive and reliable source of renewable energy for decades to come," he adds.
The industry-led Offshore Wind Cost Reduction Task Force was announced by the U.K.'s Department of Energy and Climate Change in July 2011. The group, which consists of leading professionals in the wind energy sector, held its first meeting in October 2011.
