Released March 16, 2015 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The costs associated with offshore windfarms have fallen by 11% in the last four years and the sector is on target to be competitive with coal and gas-fired power by 2020.
The first Cost Reduction Monitoring Framework report from the Offshore Wind Programme Board (OWPB), a cross government and industry body tasked with driving down the costs, claimed that the sector will be able to supply electricity at the target amount of £100 per megawatt hour (MWh) within the next five years.
"The offshore wind sector is making very significant progress on driving down costs," said Industry Co-Chair of the OWPB, Adam Bruce of Mainstream Renewable Power. "The publication of the CRMF Report, and the results of the first auction round for CfDs, show clearly that we are delivering on our commitment to the U.K. consumer. We're already ahead of schedule on cost reduction, and we're set to achieve our target of £100 per megawatt hour by 2020. Offshore wind has the potential to be the leading low carbon generation technology across Northern Europe through the 2020s. The UK has a clear leadership role, which will deliver real economic value and security of supply for the consumer."
Bruce highlighted that the U.K. offshore sector employs 13,000 people in full time direct or indirect jobs, while leading international companies such as Siemens and MHI Vestas Offshore Wind have committed to manufacturing in the U.K.. There is the potential to the number working in the U.K. sector treble within 10 years.
The European Wind Energy Association (EWEA) believes that offshore can compete with gas and coal but that it needs to cut costs by 26% by 2023 to do so. Significant cuts are called for within the next five years. The organisation said the reductions is costs will come from will come from 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%).
Thomas Becker, chief executive officer of the European Wind Energy Association said: "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. As much as we need politicians to come on board, it is also up to the industry to deliver on our commitments. 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."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The first Cost Reduction Monitoring Framework report from the Offshore Wind Programme Board (OWPB), a cross government and industry body tasked with driving down the costs, claimed that the sector will be able to supply electricity at the target amount of £100 per megawatt hour (MWh) within the next five years.
"The offshore wind sector is making very significant progress on driving down costs," said Industry Co-Chair of the OWPB, Adam Bruce of Mainstream Renewable Power. "The publication of the CRMF Report, and the results of the first auction round for CfDs, show clearly that we are delivering on our commitment to the U.K. consumer. We're already ahead of schedule on cost reduction, and we're set to achieve our target of £100 per megawatt hour by 2020. Offshore wind has the potential to be the leading low carbon generation technology across Northern Europe through the 2020s. The UK has a clear leadership role, which will deliver real economic value and security of supply for the consumer."
Bruce highlighted that the U.K. offshore sector employs 13,000 people in full time direct or indirect jobs, while leading international companies such as Siemens and MHI Vestas Offshore Wind have committed to manufacturing in the U.K.. There is the potential to the number working in the U.K. sector treble within 10 years.
The European Wind Energy Association (EWEA) believes that offshore can compete with gas and coal but that it needs to cut costs by 26% by 2023 to do so. Significant cuts are called for within the next five years. The organisation said the reductions is costs will come from will come from 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%).
Thomas Becker, chief executive officer of the European Wind Energy Association said: "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. As much as we need politicians to come on board, it is also up to the industry to deliver on our commitments. 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."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
