The cost of generating electricity from offshore wind turbines has dropped by 32% since 2012, taking the price beneath the industry’s £100/MWh target four years ahead of schedule.

The figures were revealed by the Offshore Renewable Energy Catapult (OREC) in its third annual Cost Reduction Monitoring Framework (CRMF) report, published on behalf of the joint government and industry Offshore Wind Programme Board (OWPB).

Costs have fallen due to the adoption of larger turbines, increased competition and lower cost of capital.

Projects reached their final investment decisions (FIDs) in 2015-16 with an average levelised cost of energy (LCOE) of £97/MWh, compared to £142/MWh in 2010-11.

Story ‘is just beginning’

Benj Sykes, Co-chair of the Offshore Wind Industry Council, said: “This is a story that is just beginning.

“We remain committed to delivering further significant cost reduction, while working in partnership with Government to put in place a ‘sector deal’ and build a sustainable industry that will benefit the UK for decades to come.”

Paul Wheelhouse, the Scottish Government’s Minister for Business, Innovation & Energy, added: “This is proof that the sector is rising to the challenge to reduce the cost of offshore wind, and Scotland can also be rightly proud of how we are playing our part and leading the way in the development of floating offshore wind off our coastline.‎”

> Download OREC's report