The Offshore Wind Programme Board (OWPB) set up to remove barriers to deployment and deliver a programme for industry cost reduction in the UK offshore wind sector, has published its Annual Report for 2014.
In 2014 the OWPB commissioned the Cost Reduction Monitoring Framework (CRMF). The first CRMF Report, published last Friday, shows that the cost of offshore wind energy has fallen by almost 11% over the past four years, ahead of schedule on its path to delivering the shared industry and UK Government target of a levelised cost of energy of £100 per megawatt hour for projects reaching final investment decision in 2020.
In addition, the OWPB has led on the implementation of the recommendations of the Offshore Wind Industrial Strategy, and of the 2014 Chinn Review of the UK Offshore Wind Supply Chain.
Recognising that the development of offshore wind could create a new North Seas energy sector, in 2014 the OWPB was a founder of the Seastar Industrial Alliance, which brings together the British, German, Danish and Dutch offshore wind industries to work together on deployment and cost reduction.
The Industry Co-Chair of the OWPB, Adam Bruce of Mainstream Renewable Power, said:
“The offshore wind sector is making very significant progress on driving down costs. The publication of the CRMF Report, and the results of the first auction round for CfDs shows clearly that we are delivering on our commitment to the UK 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.”
Alastair Dutton, Strategic Programme Manager at The Crown Estate and member of the OWPB, said: “Success is a team game and this year’s OWPB report demonstrates how the offshore wind sector is leading the way in industry collaboration to bring down costs and secure the material contribution that offshore wind can make to the UK’s energy mix over the long term.”