TKI: 40 Pct Cost Reduction Target Within Reach

The TKI Wind op Zee (Top consortium for Knowledge and Innovation Offshore Wind) has released a report which demonstrates the 40% cost reduction targets committed by both government and market parties in the Green Deal 2011 is within reach.

The report, made by PwC and DNV GL, with support of Ecofys, identifies potential of cost reduction in the areas of Technology, Market & Supply Chain and Finance from 2010 and 2020 (at final investment decision).

Ernst van Zuijlen, director TKI Wind op Zee said: “It is good to have a clear overview on the progress and to see that we are on the right track to reach the goals we set in 2013 in the Energy Agreement. Moreover, continued cost reductions could make offshore wind competitive with conventional forms of generation by 2030. And it may even be much earlier if a sound ETS system can be achieved giving CO2 emissions a real price.”

In the study, PwC and DNV GL conclude that the cost reduction target is feasible, as the assessed cost reduction potential of 46% by 2020, exceeds the target of 40%. This only takes into account the main cost reduction items. The cost reduction potential is possibly even larger if smaller items are also included.

Continued efforts of market parties as well as the government are needed to materialize this potential. Therefore TKI Wind op Zee will continue to work together with stakeholders on innovations to reduce costs for offshore wind.

Image: TKI