The industry is confident of driving costs below £100/MWh by 2020 on the back of long-term market certainty according to the second Cost Reduction Monitoring Framework (CRMF) report delivered by ORE Catapult to the Offshore Wind Programme Board.
Offshore wind costs are falling fast with 12 of 13 cost indicators on or ahead of target. The report shows that investment in turbine technology has delivered significant cost benefits, but that further reduction will need to come from the innovations in ‘balance of plant’, such as foundations, cables and substations. Investment in research and development and manufacturing industrialisation to deliver such improvements, the report warns, will only come with greater visibility of future rates of deployment and market size as Government sets out details of contracts for new offshore wind farms.