The European offshore wind industry must shed 26% of outlays to reach cost-competitiveness with conventional forms of energy by 2023, according to a study by Ernst & Young (EY).
The report states that the industry must significantly reduce costs over the next five years through a number of key actions, outlining where savings can be found.
These include deploying larger turbines to increase energy capture (9%); fostering competition between industrial players (7%); commissioning new projects (7%); and tackling challenges in the supply chain such as construction facilities and installation equipment (3%).
Together with clear political signals from lawmakers on regulation and support schemes, offshore wind could compete with conventional forms of energy such as gas, coal and nuclear in the first half of the next decade.
Thomas Becker, chief executive officer of the European Wind Energy Association said: “This study shows that offshore wind power in Europe will be a major contributor to the continent’s energy security now and over the course of the next decade.”
He added: “As much as we need politicians to come on board, it is also up to the industry to deliver on our commitments. It is no secret that cost reduction is a great challenge that we face in the offshore business; but as we continue to work together, innovate and compete, the sector will face down its trials in the years ahead. We must not forget the jobs, trade and growth that offshore wind is contributing to Europe.”
Image: Vattenfall (Illustration)