Britain’s offshore wind industry remains on track to bring down the cost of the electricity it generates to £100/MWh by 2020, according to a new report.

The Offshore Renewable Energy Catapult, which published the report on behalf of the Offshore Wind Programme Board, said 12 of the 13 cost reduction indicators are on or ahead of target.

Improved turbine design and project management have delivered earlier-than-expected savings.

Forthcoming announcements on the timing and scale of future Contracts for Difference (CfD) auctions and long-term capacity requirements are expected to enable costs to be reduced even further.

Going below £100/MWh

Benj Sykes, industry co-Chair of the Offshore Wind Industry Council, said: “We are very confident that we can not only reach our £100/MWh milestone, but go beyond this to become fully cost competitive with other generation technologies.

“The report shows that further clarity on the timing and volume of future CfD auctions, and the longer term capacity requirements out to 2030 and beyond, is essential for the industry to galvanise the activity that will deliver further innovation and cost reductions.”

Energy Minister Andrea Leadsom added: “Reductions in cost will mean better value for hard working bill payers, and are essential if this industry is to thrive.”

> Download a summary of the report