The cost of producing energy from offshore air farms in the UK has fallen by 32 per cent of the members in the past four years, convening a government target four years early, according to a new report.
reviewtechno.net – The Government initially named a target of £100 per megawatt hour (MWh) by 2020, a illustration that has already been reached.
The industry said it was “well on the way” to being cost-competitive with another source of power generation.
It likewise puts the costs of offshore wind close to that of new nuclear plants, with the Government contract apportioned to France’s EDF for its Hinkley C reactor projection in southwest England at £92.50/ MWh.
Schemes attaining final asset decisions in 2015/2016 were doing so with a cost of energy of £97/ MWh, compared against £142/ MWh five years earlier, the third annual cost reduction monitoring fabric (CRMF) report shows.
The dropped in expenditure is down to the adoption of large turbines, increased competition and lower cost of uppercase, according to the paper from the Offshore Renewable Energy (ORE) Catapult on behalf of the Offshore Wind Programme Board (OWPB).
Installing fewer, large turbines reduces operating and maintenance expenses, with the newest 8MW groups affording enough energy to fill a household’s power needs for more than a day from precisely one pirouette of the blades, the industry says.
UK energy minister Jesse Norman suggested: “The UK’s leadership in offshore gale clearly demonstrates that it is an enticing destination for renewable energy speculation.”
He said the industry would be an important part of the Government’s new industrial approach summarized on Monday and would be underpinned by £730m of annual support for renewables over the course of the parliament.
“Thanks to the efforts of developers, the UK’s strenuous equip bond and subscribe from Government, renewables expenses are continuing to fall.
“Offshore wind will continue to help the UK to meet its climate change commitments, as well as giving jobs and swelling across the country,” he said.
Co-chairman of the Offshore Wind Industry Council (OWIC) Benj Sykes read offshore wind was a “big success story at the heart of the UK’s industrial approach”.
” The industry is cutting costs much faster than predicted, while causing thousands of jobs and animating investment nationwide. But this is a legend that is just beginning.
“We remain committed to delivering further significant cost reduction, while working in partnership with Government to put in place a area slew and build a sustainable industry that will benefit the UK for decades to come.
“Our industry’s goal is to be cost-competitive with other generation roots and this new data would point out that ambition is realistic and that we are well on the way to achieving it.”
Industry body RenewableUK’s deputy chief executive, Maf Smith, read: “This impressive drop in offshore breath expenditures illustrates the strong commitment by the entire industry to delivering quality for coin for consumers.
“We’re attending the kind of tenacious reduced costs and technical inventions in offshore breeze which generally links with circumstances like shopper electronics- TVs and phones.
“The interesting thing here is that this is now happening with multi-billion-pound offshore vigor infrastructure projects.”
Further reduced costs would be achieved by sourcing more components and assistances in the UK, developing a afford chain which previously utilizes millions of people.
“This is just the start of an industry which is set to become a mainstay British supervisor,” he said.
A recent discusinto renewable energy found that tidal bays could also become a major part of the UK’s energy mix in the future.