The European offshore wind industry could become cost-competitive with conventional forms of energy such as gas, coal and nuclear within a decade, according to a study by EY.
The report, which was commissioned and funded by the European Wind Energy Association (EWEA), states that the industry must significantly reduce costs over the next five years through a number of key actions, outlining where savings can be found.
The report says these include deploying larger turbines to increase energy capture (9%); fostering competition between industrial players (7%); commissioning new projects (7%); and tackling challenges in the supply chain such as construction facilities and installation equipment (3%). Clear political signals from lawmakers on regulation and support schemes are also essential, the report notes.
‘This study shows that offshore wind power in Europe will be a major contributor to the continent's energy security now and over the course of the next decade," says Thomas Becker, CEO of the EWEA.
‘As much as we need politicians to come on board, it is also up to the industry to deliver on our commitments," he adds. "It is no secret that cost reduction is a great challenge that we face in the offshore business, but as we continue to work together, innovate and compete, the sector will face down its trials in the years ahead. We must not forget the jobs, trade and growth that offshore wind is contributing to Europe.’
Alongside the release of the EY report, EWEA says three of the biggest names in offshore wind have initiated a joint declaration, called "United Industry," as part of a commitment to reducing costs in the sector.
The full EY report is available here.
