Cost reductions in the offshore wind industry will continue and we expect to see a further 30 percent cut to the current Levelised Cost of Energy (LCoE) by 2030, Mike Blanch, Associate Director, BVG Associates, said.
The larger offshore wind turbines that have appeared on the market in the last two years are responsible for about a third of the cost reduction seen during the period, Blanch said.
Other reasons for the lower LCoE are positive changes in the supply chain, and mainly the cost of finance, as offshore wind is now seen as less risky of an investment, according to Blanch.
The trend is set to continue in the foreseeable future, albeit at a slower pace, Blanch said.
Speaking on future developments in the offshore industry, Blanch pointed out that the low cost of offshore wind could lead to an increased demand for additional capacity which could potentially surpass the actual demand for electricity and thus creative energy storage solutions must be found.
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