The European offshore wind industry must shed 26 per cent of outlays to reach cost competitiveness with conventional forms of energy by 2023, according to a study by 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%).
United Industry
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. Alongside the release of the EY report, three of the biggest names in offshore wind have initiated a joint declaration – called “United Industry” – as part of a commitment to reducing costs in the sector.
Dong Energy, MHI Vestas and Siemens Wind Power and Renewables have pledged to undertake joint and individual actions across the whole of the value chain to deliver “major long-term and tangible advancements”.
